Post on 15-Apr-2017
transcript
Abdullatif Alissa Group 1
Alissa Group Profile
Mar. 12, 2009
Abdullatif Alissa Group 2
Table of Contents
1. The Group 1. History 2. Business Segments 3. Organization Structure & Approach
2. The Saudi Market
3. Operating Companies1. Abdullatif Alissa Automotive Co. (AACO)2. General Automotive Co. (AUTOSTAR)3. Al-Yusr Installment Co. (AL-YUSR)4. Best Rent-a-car (BTC)
4. Investment Activities
Abdullatif Alissa Group 3
Abdullatif Alissa Group
Abdullatif Alissa Group 4
History – Group Automotive Business
1940 : Started commercial business in Eastern province of Saudi Arabia
1950 : Started selling vehicles from the Eastern province
1960 : Expanded Car business in Riyadh
1960 : Launched ‘Al-Yusr’ in financing business
1968 : Awarded the sole agency of LUCAS/DELPHI group of companies
1974 : Awarded dealership for vehicles and parts. 1985 : Awarded motors franchise1990: Awarded the dealership of 1990: Launched ‘Best’ rent a car business1994-97: Won the prestigious Cadillac Master Dealer Contest four years in a row1998: Launched General Automotive Company (AUTOSTAR) as a multi-brand car retailer2006: Acquired Japanese accessories franchise Yellow Hat. 2007: Achieved GM “Chairman’s Challenge” award for the fifth time 2008: Acquired distribution rights for East European HD Truck Franchise (AVTOKRAZ)2008: Signed an alliance with Group 1 Automotive, Inc. a Fortune 500 automotive retailer
Proven record of successful partnering and pioneering
Abdullatif Alissa Group 5
Business Segments
Total workforce of 2400, assets under management of $1 Billion with 70% invested in Core Automotive Sector
Abdullatif Alissa Holding Co.
Private Equity
Public Listed
Investment
Best Rent-a-car Al-Yusr
ISUZUAlissa Auto General Auto
(Autostar)
Real Estate and Construction
GM
Automotive (Franchised)
Automotive (Non Franchised)
Retail Finance
SPCAlissa Auto
Abdullatif Alissa Group 6
Our Strengths
Respected ALISSA name Over 50 years of experience partnering with international
brand names Strong track record of pioneering new businesses Strong business planning and management disciplines Empowered corporate structure Investment in Human Resource development and training State-of-art MIS systems
Abdullatif Alissa Group 7
Our Guiding Principles
We are committed to team work, learning and service excellence
We will continue to enhance stake holder's value by meticulously managing our businesses.
We will grow by creatively diversifying into new products and services.
We will forge long term alliances with partners, mutually adding value to our respective businesses.
Abdullatif Alissa Group 8
Our Management Structure
Board of Directors
Board Audit Committee
Group Internal Audit & Risk Mgmt. Manager
Chairman & Managing Director
Sh. Abdulmohsen Alissa
GM, Legal
Chief Financial Officer
GM, Investment & Business
Development
Group Advisor, Planning &
Performance Mgmt. *
GM, Al-Yusr Installment Co.
CEO, Abdullatif Alissa Automotive Co.
GM, Specialized Projects Company
CEO, Automotive Division *
GM, General Auto. Co.
GM, Best Trading Co.
GM, Group HR
GM, Group IT
Manager, Facilities
GM & ISUZU
GM, Best Rent-a-car
Abdullatif Alissa Group 9
Our Planning & Review process
Bi-WeeklyBusiness Reviews
3 – yearBusiness
Plan
BU/Op. Co.
MonthlyBusiness Reviews
Op. Co. BU & Group
QuarterlyBusiness Reviews
Op. Co. Mgnt. & Board
Extensive Training & Incentivised Performance Management
Abdullatif Alissa Group 10
Our Corporate Governance
Separation of Ownership and Management roles Active Board and Board Committees with independent NED Three (3) Special Focus Committees of Finance, HR and Audit Adopted corporate governance guidelines Empowered Management with defined review cycle Implemented Balanced Scorecard Methodology with defined
objectives, targets and measurements Established in-house training department with extensive annual
technical/soft skills training programs, mentoring and fast tracker schemes
Revised and upgraded HR Management guide with special focus on performance management
Aligned Organization structure, Job description, Job grading, career path and compensation structure to market and best practices
Abdullatif Alissa Group 11
Business Support Infrastructure
Established CCC and Call Center with in & Outbound capabilities Commissioned independent customer satisfaction and mystery
shopping program with AC Nielsen Implementing IBM COGNOS performance management software for
planning, KPI’s, score carding, reporting etc. Continuous investment in upgrading Computer hardware, networks,
communications and security Strong In-house Group IT Department of 30 staffs capable of In-house
system development, training and process re-engineering Upgraded to Kerridge latest Version 8.35 with strong graphic
capabilities. Installed high speed networks, latest servers and security system (ISS-
IBM) Developing automated workflows using Adobe
Abdullatif Alissa Group 12
Geographic Coverage
Abdullatif Alissa Group 13
Consolidated Group Revenue
1,643
2,226
2,681
3,141 3,400
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
04 05 06 07 08
(SR Millions / $ Millions)
($ 430)
($ 594)
($ 715)
($ 838)
Consistent Growth out performing the market
($ 907)
Abdullatif Alissa Group 14
Growth Trends (S
R M
illio
ns)
(SR
Mill
ions
)
% Growth 10% 20% 0% 29%
Alissa Auto (AACO) General Auto (Autostar)
Al-Yusr Best Rent-a-car (BTC)
% Growth 27.3 19.4 -11.0 25.5 % Growth 6.2 25.5 16.7 8.2
(SR
Mill
ions
)
No.
of V
ehic
les
2004 2005 2006 2007 20080
500
1000
1500
2000
2500
811
1196
15821774
1924
% Growth 47.5% 32.3% 12.1% 8.5%2004 2005 2006 2007 2008
0100200300400500600700800
444488
594 587
761
2004 2005 2006 2007 20080
50
100
150
200
250
113120
145182
197
04 05 06 07 080
2,0004,0006,0008,000
10,00012,00014,00016,00018,000
8,535
11,68714,500
12,900
16,200
Abdullatif Alissa Group 15
Consolidated Balance Sheet
In US$ Millions
2004 2005 2006 2007 2008
Total Assets 473 709 743 965 1,000
Shareholder's Equity 223 289 284 370 320
% Asset Growth (2004 as base) 49.9 57.1 104.0 111.4
% Equity Growth (2004 as base) 29.6 27.4 65.9 43.4
Abdullatif Alissa Group 16
The Saudi MarketAutomotive Sector
Abdullatif Alissa Group 17
Persons Per Vehicle
Market growth will accelerate in view of low penetration and demographics
Abdullatif Alissa Group 18
Saudi Auto Market
'04 '05 '06 '07 '08 '09 '10New Car Sales 318 387 435 490 530 575 605
318387
435490
530575
605
0
100
200
300
400
500
600
700
Uni
ts (1
000s
)
New Car Sales
Growth Rate % 9.7% 21.7% 12.4% 12.6% 8.2% 7.5% 7.0%
Abdullatif Alissa Group 19
Saudi Market Potential
Low penetration of vehicles / person, favorable demographics and macro economic factors are contributing factors to continued growth in the automotive sector
Manufacturers with good product line, sound distribution network and quality after sales services will benefit from the boom
Abdullatif Alissa Group 20
Operating Companies
Abdullatif Alissa Group 21
Abdullatif Alissa Automotive Co. Ltd.(AACO)
Abdullatif Alissa Group 22
Background
Established in 1950 Franchisee for GM since 1974 & Isuzu since 1985 3rd largest franchisee for GM in the Middle East 3rd largest franchisee for Isuzu in the Middle East 2nd largest automotive distributor in the Central region
after Toyota No. of branches increasing from 6 in 2006 to 15 by 2010
with 3S & 2S facilities Service bays increasing from 103 in 2004 to 204 in 2010
Additional bays in progress for recently approved sites Total staff as of Dec 2008 - 624
Abdullatif Alissa Group 23
Total Vehicle Sales (GM & Isuzu)
Alissa % Growth 44% 37% 8% (-4%)Market Growth 21% 12% 12% na
Alissa outpaced the market
Abdullatif Alissa Group 24
South Ring Road Facility
Abdullatif Alissa Group 25
General Automotive Co.
Abdullatif Alissa Group 26
Established in 1998
Engaged in Sale of multi-brand new and used vehicles Provider of After-sale services Wholesale of spare parts (OEM & Non-OEM) Auto accessory H/D Truck distribution
The only “Non-Franchised” company in KSA providing multi-brand 3S facilities Kingdom-wide.
Number of vehicle showrooms increasing from 9 in 2007 to 16 by 2009 Number of Parts outlets (Wholesale & Retail) increasing from 34 in
2007 to 37 in 2009
Total Staff as of May 2008 – 572 employees
Background
Abdullatif Alissa Group 27
Revenue
(SR Millions)
% Growth 10% 20% 0% 30% 16% 20%
Abdullatif Alissa Group 28
Autostar Outlets
Showrooms Service No. of Bays Parts
Jeddah 1 Jeddah 2 Jeddah 52 Central 10
Makkah 1 Makkah 1 Makkah 3 Eastern 13
Riyadh 4 Riyadh 2 Riyadh 125 Western 11
Buraidah 1 Buraidah 1 Buraidah 26
Dammam 2 Dammam 1 Dammam 50
Al-Hasa 1 Al-Hasa 1 Al-Hasa 3
Al Khobar 1
Abha 1
Total 12 Total 8 Total 259 Total 34
Dedicated stockyards and warehousing available in each region
Abdullatif Alissa Group 29
1) Auto Accessories (Yellow Hat)
2) H/D Truck (AvtoKraz, Ukraine)
3) Used Car Supply Chain (Group 1 - USA)
4) State-of-Art Body & Paint Shop
New Business Initiatives
Abdullatif Alissa Group 30
Al-Yusr Installment Co.
Abdullatif Alissa Group 31
Established in 1960 as one of the pioneers in the auto financing business
Engaged in financing of New and Used Vehicles, expanding into real estate mortgaging.
Portfolio under management exceeding $800mm. Signed $260mm loan facility with Riyadh Bank to promote Al-
Yusr Auto financing Structured and reorganized to service non-Group automotive
business as well Sophisticated and automated credit and risk management
systems, first non-bank organization to have direct link up with SIMAH (Saudi Credit Bureau)
Branch network (9) increasing to 18 by 2009 covering all major town centers in the kingdom
Background
Abdullatif Alissa Group 32
No. of Vehicles Financed
Average Annual Growth of 29% (‘04-’10)
Abdullatif Alissa Group 33
Best Trading Company(BTC)
Abdullatif Alissa Group 34
Established in 1990 Rental and leasing of vehicles to retail and corporate
clients. Over 70% of the fleet in corporate sector Fleet of over 8,800 vehicles increasing to 15,000 by
2012 positioning BTC as a second largest operator. Replacing annually over 4,800 vehicles in 2008 increasing
to 9,600 by year 2012 mostly from within/through the group companies
16 outlets and 3 regional offices in 2008 increasing to 35 outlets by 2012.
Total Staff as of May 2008 – 510 employees increasing to over a 1,000 by 2012
Background
Abdullatif Alissa Group 35
Very successful turnaround since 2004
Revenue
(SR Millions)
Abdullatif Alissa Group 36
BTC is a very large purchaser for Group companies
Fleet Size / Purchases
Abdullatif Alissa Group 37
Investment Activities
Abdullatif Alissa Group 38
Investment Portfolio
Finance Rasameel Structured Finance Co. (Securitization, debt & asset re-
structuring) Gulf Capital (Private equity, Investment banking, Real estate & asset
management)
Industrial Saudi Industrial Investment Group (Petrochemicals) Basic Chemical Industries Co. (Chemicals Manufacturing) Saudi Vitrified Clay Pipe Co. Ltd. (Pipe Manufacturing) Advanced Construction Holding Co. (Construction Material) Gulf Ferro Alloys Co. (Metal alloys manufacturing) Middle East Battery Co. (Automotive Batteries) Arab Paper Manufacturing Co. Ltd. (Paper mill – recycled paper) Gulf Salt Co. Ltd. (Salt production) Bahrain Aluminum Extrusion Co. (Aluminum products) Light Building Material Co. (Siporex)
Abdullatif Alissa Group 39
Investment Portfolio
Insurance Royal & Sun Alliance Insurance Ltd. (Insurance products & services)
Service Saudi Development & Re-Export Services Co. (All port-related
services) Chemicals Marketing & Distribution Co. (10%) (Marketing &
Distribution)
Real Estate Inmaia Real Estate & Tourism Investment Co. (Ownership,
development and management of commercial real estate and tourism related projects)
Gulf Real Estate Co. (Real estate investment and development) Makkah Hotel Co. (Hotel ownership, investment & operation)
Abdullatif Alissa Group 40
In Brief
Alissa core business is Automotive and shareholders are committed to expanding in this sector
Alissa has an impressive record of growth outpacing the market
Alissa has developed strong Corporate Governance, management systems & empowered management
Alissa has an investment–oriented business approach Automotive market in Saudi Arabia is poised for strong
growth and Alissa Group believes that its strategic alliance with industry leaders would deliver above market growth for mutual benefits
Abdullatif Alissa Group 41
Thank You