Prsentation PowerPoint

1
DIeteren
Jean-Pierre Bizet Group Executive Vice
President Benoît Ghiot Group Financial Manager
May 2004
2
DIeteren
Agenda

• Group highlights
• 2003 results overview
• Automobile distribution - DIeteren Auto
• Car rental - Avis Europe plc
• Vehicle glass - Belron s.a.

3
DIeteren
Group Highlights
4
Group Highlights
DIeterens portfolio of activities

• Avis Europe
• 1 Car rental group outside Americas
• more than 110 countries - 4,000 locations

• DIeteren Auto
• 1 Car distributor in Belgium
• 350 independent dealers
• and 12 fully-owned dealers
• Long term car rental DIeteren Lease

• Belron
• 1 vehicle glass repair replacement (VGRR)
  group worldwide
• 27 countries - 1,000 stations- 3,500 mobile units

5
Group Highlights
Free float Euronext Brussels
50.4
7.1
41..5
DIeteren s.a.
Own shares
1
100
DIeteren Auto
6
Group Highlights
Revenue 2003 EUR 4.1 billion
EBITA 2003 EUR 257 m
Net current earnings before minorities1 EUR
121 m
Net current earnings 1, groups share 2003
EUR 84 m
1 before amortisation of consolidation
differences and extraordinary results
7
DIeteren
2003 results overview
8
DIeteren
Segment contribution to Group revenue
Consolidated Group revenue EUR 3.029,5 m (-1.2)
Total segment revenues EUR 4.090,6 m (1.0)
Belron EUR 1.061,1 m
Equity method
Avis Europe EUR 1.169,4 m
Avis Europe EUR 1.169,4 m
Fully consolidated
DIeteren Auto EUR 1.860,1 m
DIeteren Auto EUR 1.860,1 m
Fully consolidated
9
DIeteren
Segment contribution to Group EBITA
Consolidated Group EBITA EUR 173.7 m (-27.4)
Total segment EBITA EUR 256.6 m (-18.2)
Belron EUR 82.9 m
Equity method
Avis Europe EUR 122.8 m
Avis Europe EUR 122.8 m
Fully consolidated
DIeteren Auto EUR 50.9 m
DIeteren Auto EUR 50.9 m
Fully consolidated
10
DIeteren
Segment contribution to current result after
taxes 1
Vehicle glass 2 EUR 19.9 million 26.8
Automobile distribution 2 EUR 36.9 million
3.7
DIeteren shareholding 56.65
Consolidated current result after taxes 1 EUR
83.9 m, 20.8 lower
Car rental EUR 27.1 million - 50.4
DIeteren shareholding 59.60
1 Share of the group, excluding amortisation of
consolidation differences 2 After allocation of
a financial result linked to DIeterens
investment in vehicle glass
11
DIeteren
Net financial debt (including Belron)
Acquisition of Belron
2,173
2,025
1,986
1,822 1
1,756 1
1,138



1 After deduction of Avis Europe deposit for
leases collateral (EUR 100,1m in 2003 EUR 85,1m
in 2002)
Belron data exclude shareholders loans
12
DIeteren
2004 Outlook
Based on the outlook for the three activities,
FY 2004 current result after taxes1, groups
share, is expected to be slightly higher than in
FY 2003.
1 Before amortisation of consolidation differences
13
Agenda
Automobile Distribution with DIeteren Auto
14
DIeteren Auto
Market of new cars DIeterens market share
Market (in thousand of units)
DIeterens marekt share ()
15
DIeteren Auto
Share of DIeteren Auto in Belgian new car
registrations
New car registrations
FY 2003
FY 2002
H1 2003
H2 2003
New car market (in units)
467,569
458,796
196,773
262,023
DIeteren Auto total
18.0
17.8
17.1
18.6
Volkswagen
10.0
9.9
9.6
10.3
Audi
4.3
4.4
4.3
4.4
Seat
2.2
2.0
1.8
2.3
Skoda
1.4
1.4
1.3
1.5
Porsche
0.1
0.1
0.1
0.1
16
DIeteren Auto
New car registrations registrations share
evolution
DIeteren Auto registrations share
New car registrations (000)
400
20
18.6
18.4
17.8
17.1
18
350
16
300
14
292
250
262
12
200
10
197
8
176
150
6
100
4
50
2
0
0
2002 2003
2002 2003
H1
H2
17
DIeteren Auto
Overview

• Rebound of activities in H2 thanks to new models
  and presence in new segments
• Revenue quasi flat, H1 decrease offset by H2
  growth
• Operating margin on revenue stable, despite high
  marketing costs, due to mix improvement and cost
  control
• Networks restructuring completed
• Competitiveness improvement plan in the Brussels
  agencies on track

18
DIeteren Auto
Results headlines
1 After allocation of a financial result after
taxes associated with DIeterens investment
in the vehicle glass segment - see slide Impact
of Dicobel in DIeteren accounts in vehicle
glass section 2 Share of the group
19
DIeteren Auto
Revenue quasi flat, overall

• Low performance of H1 nearly offset by sales
  increase of H2
• Decrease of new and used vehicles mitigated by
  more stable other activities

Revenue evolution
Revenue breakdown by activity
3
5
2
8
10
72
20
DIeteren Auto
Operating profit (EBITA)
- 11.2
9.2
52.8
- 3.0
50.9
3.1
Increase of marketing costs and fleet depreciation
Savings in overheads
21
DIeteren Auto
Net result

• Provision reversal IFRS 10.9
• Retail restructuration - 5.5
• Others 3.4

47.2
1.5
8.8
4.5
- 0.9
- 0.2
- 0.2
36.9
35.6
- 1.9

• Favourable impact of
• interest rates
• valuation of own shares

22
DIeteren Auto
Achievements in 2003

• Networks development
• New contrats concluded with dealers in line with
  European distribution regulation
• and the specialisation by make

• DIeteren Brussels agencies
• Launch of a competitiveness improvement programme
  to improve profitability, service quality and to
  split the VW and Audi brands
• New investment AUDI CENTER in Zaventem

23

• NEW AUDI CENTER

24
DIeteren Auto
Outlook for 2004

• FY 2004 Registrations
• 470,000 new car registrations expected, 3
• Expected DIeteren share close to 19
• Revenue
• Expected increase of around 10 in new vehicles
  sales
• New product launches
• VW Caddy (Apr 04), Audi A6 (May 04), Seat Altea
  (Sept 04), Skoda Octavia (Sept 04), Audi A3 5
  doors (Sept 04), Seat Toledo (Nov 04), VW Passat
  (Jan 05)
• Costs
• High marketing costs promotional actions in a
  still competitive environment
• Continuing intensive focus on overheads

25
Audi A6
26
Seat Altea
27
VW Caddy
28
Agenda
Short Term Car Rental
29
Avis EAMEA

• Corporately-owned operations
• Some 5 million rentals annually
• 14 countries, c.1750 locations
• Presence at the 75 principal
• European airports
• Fleet purchases of
• c.EUR 2.5 billion per year
• Licensee network
• 93 countries c.1250 locations

30
Budget EMEA

• 65 countries
• Over 1,000 locations
• predominately franchisee

31
Car Rental with
2003 Results overview

• Overall performance significantly impacted by
  Iraq conflict and weaker pricing environment
• Current result, in line with guidance given in
  2003
• Overall volume and yield improvement in H2
• Acquisition and integration of Budget and French
  licensee
• Strong control of costs and focus on margin
  improvement projects
• Significant extraordinary charges primarily
  following exit from Centrus

32
Car Rental with
2003 Results headlines
Note the average shareholding used for the
consolidation of Avis Europe is 59.60 compared
with 56.78 in 2002. 1 Before amortisation of
consolidation differences
33
Car Rental with
Revenue
change
2003
2002
EUR million
Underlying at constant currency Currency
translation French licensee acquisition Revenue
at actual rate Budget CentrusRevenue as
reported
- 1.6- - - 1.7 - - 64.5 - 1.7
1,137 - 18 161,135 22 12 1,169
1,154 - -1,154 - 35 1,189
34
Car Rental with
Operating profit (EBITA)
2003
change
2002
EUR million
Underlying at constant currency Currency
translation French licensee acquisition Operating
profit at actual rate Budget CentrusOperating
profit as reported Underlying operating margin

135.0 2.3 0.6 137.9 - 5.3 - 9.8 122.8
11.9
188.5 - - 188.5 -
- 1.9 186.6 16.3
- 28.5 - - - 26.8 - n/m - 34.2 - 4.4
35
Car Rental with
Underlying margin movement
Revenue
Operating profit
Operatingmargin
EUR million
1,154 40 - 57 1,137
189 16 - 48 - 33 4 9 - 2 135
16.3 0.8 - 3.4 - 2.9 0.4 0.8 - 0.2 11.9
2002 Revenue - Volume up 3.4 - Revenue per
day down 4.8 Cost - Inflation - Utilisation -
Productivity - Projects 2003 underlying
36
Car Rental with
Key Operating trends
Utilisation up 0.9 Productivity up 3.3
Fleet
Staff
70
68.7
850
830.3
68.5
817.9
804.0
68.1
68
800
66
750
64
700
Rentals per FTE
Utilisation

62
650
60
600

58
550
56
500
Utilisation
Productivity
Includes French licensee acquisition
37
Car Rental with
Net extraordinary charge
Consolidation differences
Other
Total
EUR million
31.8 38.5 70.3 - 14.0 14.0 13.8
- 13.8 - 4.4 4.4 - - 7.2 -
7.2 0.3 6.8 7.1 45.9 56.5
102.4

• Centrus
• Software project
• Impairment on earlier acquisitions (Holland,
  Münster)
• Budget
• VAT repayment incl. interest
• Other

Net extraordinary charge before taxes Tax
impact - 9.9 Net extraordinary charge
after taxes 92.5 Share of DIeteren
(59.60) 55.1
38
Car Rental with
Yield management

• Optimisation of yield per car month
• Weekly pricing review
• Same process in each country
• Yield management tools
• Local empowerment
• Development of internet channel
• Net yield enhanced through lower distribution
  cost
• Investment in improved functionality and on-line
  marketing
• Year-on-year growth of 62
• Internet now 14 of reservations UK 25
• Corporate customer initiatives with share
  benefits

39
Car Rental with
Investment for margin improvement

• Finance centralisation
• Shared service center opened in Budapest
• Pilots in Germany and Belgium
• European roll-out complete 2005
• IT restructuring
• Project to reduce IT support cost and increase
  flexibility
• Pan-European agreement with Unysis to outsource
  infrastructure and support
• Implementation complete end 2005

40
Car Rental with
Investment for 1 point margin improvement by 2006
EUR 78 m spend over 4 years
2003
2004
2005
2006
EUR million
Exceptional costs
Capital Expenditure
41
Car Rental with
Budget RAC acquisition

• Rebuilding the business
• Revised strategy
• Strengthening licensee relationships
• Re-establishing UK network, including 4 airport
  locations recently acquired
• Head office and call centre consolidated into
  Avis facilities
• Other synergies, including joint sourcing of
  vehicles and on-line reservations

42
Car Rental with
2004 Outlook

• No significant recovery in demand
• Yield environment remains competitive
• Refocused on core rental business
• Investment for future growth and development
• Budget RAC turnaround taking longer however,
  broadly flat operating performance expected in
  the rest of the Group

43
Agenda
Vehicle Glass with Belron
44
Business summary

• The worlds largest specialist vehicle glass
  repair and replacement (VGRR) company operating
  in 27 countries, across 4 continents
• No. 1 specialist in all its markets
• Own internal distribution operations to support
  purchasing, warehousing and delivery
• Growing geographic coverage - 15 new markets
  since 1999
• Solid financial performance with steady growth in
  revenue, EBIT, and cash flow over the last 3
  years

45
2. The global AGRR market
Continuing growth opportunities
VGRR potential in accessed markets 21.5m jobs
Worldwide Vehicle Parc 834m units
Vehicle parc in markets where Belron
operates 250m units
Belron share 21
Based on 2003 market and data
46
Clear strategy
Acquisition
New Markets
Franchising
Brand

Sales Growth
Key Accounts
Share Growth
Service Innovation
New Opportunities
Strategic Initiatives
Profitable Growth
Exec Development
Leveraging Fixed Costs
Business Unit
Productivity
IT Systems
Efficiencies
Standardisation
Supply Chain
Support from Centre
47
Vehicle glass with

2003 Results overview

• Revenue exceeded the EUR 1 billion mark for the
  first time
• Strong revenue growth despite adverse exchange
  rates
• Double-digit growth in operating profit
• 4 new markets added with a presence in 27
  countries across 4 continents

48
Vehicle glass with

2003 Results headlines
EUR million 2003 2002 change Total jobs (in
million units) 4.7 4.1 14.6 Revenue 1,061.1 981
.4 8.1 Operating profit (EBITA) 82.9 74.6
11.1 EBITA margin 7.8 7.6 Net financial
result - 30.2 - 32.7 Net extraordinary result -
6.3 2.8 Profit before taxes 23.7 21.6
9.7 Current result after taxes 1, 31.2 24.3
28.4 Dicobels share
1 Share of Dicobel, before amortisation of
consolidation differences The average
shareholding used for the consolidation of Belron
is 80.93 as in 2002
49
Vehicle glass with

Revenue
1,061.1
32.2
79.2
981.4
- 31.7
3.3
- 3.2
8.1
Italy, Sweden, Norway, Brazil
50
Vehicle glass with

Revenue by geography

• Growth1 above 10 in UK and France
• Growth1 above 25 in high potential markets such
  as Spain and Portugal
• Turbulent market conditions in Canada

Geographical revenue breakdown2
Revenue evolution 2 (EUR million)

Europe 10 France Germany UK Ireland Netherl
ands Belgium Spain Italy Portugal Switzerland Luxe
mbourg Denmark Sweden Norway Rest of the
world 1 Canada New Zealand Australia Brazil
Rest of the world 18
Europe 82
1 at constant FX 2 at actual FX
51
Vehicle glass with

Operating profit (EBITA)
9.5
-13.6
37.1
-6.0
-19.9
82.9
2.6
74.6
-1.4
10 additional branches

• Includes
• - IT costs
• Call centres
• Head offices

Purchasing and productivity
52
Vehicle glass with

Net result

• Positive extraordinary results in 2002
• Restructuring of the UK supply chain
• Cost reduction plans in Australia Canada

- 9.1
0.4
2.5
8.3
- 4.3
EUR million
10.1
9.1
1.2
Reduction of net debt
Net result 2002
Net result 2003
EBITA
Financial results
Amort. consol. diff.
Extraordinary result
Taxation
Minority interest
53
Vehicle glass with

Growing geographic coverage

• Franchise agreements in Poland, Serbia
  Montenegro
• Total Belron franchised countries today 9
• New subsidiary in Norway (Jul 03)
• Acquisition of Norways largest vehicle glass
  company
• Revenue of EUR 6.5 m in 2002 in vehicle parc of
  over 2.5 m vehicles
• Enhancing Belrons Scandinavian coverage
• Re-entry into Brazil (Sep 03)
• Joint venture with local business partners
• Revenue of EUR 11.2 m in 2002
• Brazilian vehicle parc of over 20 m vehicles

54
Vehicle glass with

Growing geographic coverage 15 new markets
since 1999
2000 Switzerland, Greece 2001 Denmark,
Turkey, Slovenia, Croatia, Bosnia 2002
Sweden, Italy, Czech Rep., Israel 2003
Norway, Brazil, Poland, Serbia-Montenegro
55
Vehicle glass with

2004 Outlook

• Revenue growth driven by
• Organic sales, marketing customer service
• Geographic expansion
• New business initiatives
• Restructuring plans for Canada and Australia
  ongoing
• Continued focus on margin and productivity gains
• Revised timetable for implementation of new IT
  platform, due to significant delays incurred in
  development

56
Vehicle glass with

Impact of Dicobel in DIeteren accounts
70
70
1
1 Net financial charges after taxes borne by the
automobile distribution segment and allocated to
the vehicle glass segment
57
Appendices
58
DIeteren
Consolidated PL Account
59
DIeteren
Consolidated balance sheet
Autom. Distribution
Car Rental
Group
2003
2002
2003
2002
2003
2002
Equity pick-up and receivables
60
D'Ieteren Auto
Appendix A PL account of DIeteren Auto
EUR million
share of the group
61
D'Ieteren Auto
Appendix B Reconciliation Net result vs.
Current result after taxes
2002
2003
EUR million
62
Car Rental with
Appendix C Avis Europe PL (as reported by
D Ieteren)
EUR million
63
Car Rental with
Appendix D Reconciliation Net result vs.
Current result after taxes
2003
2002
EUR million
Average shareholding age 59.60 in 2003
56.78 in 2002. Closing shareholding age
59.59 in 2003.
64
Vehicle glass with

Appendix E PL account of Belron
EUR million
65
Vehicle glass with

Appendix F Reconciliation Net result vs.
Current result after taxes
EUR million
66
DIeteren
Financial Communication T. 32 2 536 54
39 F. 32 2 536 91 39 e-mail
financial.communication_at_dieteren.be www.dieteren
.com
67
FORWARD LOOKING STATEMENT
To the extent that any statements made in this
presentation contain information that is not
historical, these statements are essentially
forward-looking. The achievement of
forward-looking statements contained in this
presentation is subject to risks and
uncertainties because of a number of factors,
including general economic factors, interest rate
and foreign currency exchange rate fluctuations
changing market conditions, product competition,
the nature of product development, impact of
acquisitions and divestitures, restructurings,
products withdrawals regulatory approval
processes and other unusual items. Consequently,
actual results may differ materially from those
expressed or implied by such forward-looking
statements. Forward-looking statements can be
identified by the use of words such as "expects,"
"plans," "will," "believes," "may," "could"
"estimates," "intends", "targets", "objectives",
"potential", and other words of similar meaning.
Should known or unknown risks or uncertainties
materialize, or should our assumptions prove
inaccurate, actual results could vary materially
from those anticipated. The Company undertakes no
obligation to publicly update any forward-looking
statements"