02 MESSAGE TO SHAREHOLDERSD’IETEREN ANNUAL REPORT 20102010: A YEAR OF RECORDSIt is thanks to our remarkable teams that wewere able to post record results in 2010. Ourteams proved their agility during the crisis andcontinued to do so in 2010, thereby taking fulladvantage of the economic recovery. The teamsat D’Ieteren Auto responded to an automotivemarket which was a lot more vigorous thanexpected, without cutting back on servicequality. Avis Europe’s teams showed greatflexibility in managing unexpected events,such as the volcanic ash cloud in April, andsatisfying customers under all circumstances.Belron’s teams set their hearts on maintainingan unrivalled service for customers, insurersand fleet partners, while managing to completeseveral acquisitions, in its well-establishedcountries as well as in China and Russia.The Group ended 2010 with a current consolidatedresult before tax of 305.4 million EUR, up 42.6%,including the net impact of the additionalinterest acquired in Belron. An increase of35.5% at constant consolidation perimeter.
MESSAGE TO SHAREHOLDERS 03D’IETEREN ANNUAL REPORT 2010In automobile distribution,D’Ieteren Auto started the year countingon a stable or slightly growing automobilemarket. Finally, supported byincentives for cleaner vehicles, newcar registrations in Belgium grew byalmost 15% in 2010, reaching 547,347registrations, a record level. In thisexceptional market, D’Ieteren Auto’sshare of new car registrations increasedto 20.13%, compared with19.34% in 2009. The Volkswagen andŠkoda makes contributed the most tothis gain, with VW taking advantage ofthe recovery plan introduced in 2009and Škoda benefi tting in particularfrom the success of the new Superb.Most other brands distributed byD’Ieteren Auto recorded exceptionalsales volumes in 2010. The marketingstrategy put in place to attract customersbore fruit and enabled demand tobe met. Several new models were alsosuccessfully launched in 2010.More new models will be launched in2011, supporting the growth objectivefor the share of new car registrationsin a market which will likely be lowerthan in 2010.In vehicle glass,Belron again achieved strong organicgrowth due to favourable weatherconditions, especially in Europe, toadditional marketing investment andto its operational ability to meet thestrong demand. In the United States,Belron heavily invested to improveits logistics effi ciency and its customerservice. A new distribution centre,Belron’s biggest to date, was openednear Atlanta and a number of brancheshave been renovated or opened.A new call centre was also opened.These investments helped furtherimprove penetration and customerservice.In addition to improving its marketshare in existing markets, Belroncontinued its geographic expansion.Notably, it acquired its franchisee inTurkey and entered the Russian marketat the end of the year, through theacquisition of 17 branches in four largecities, including Moscow and SaintPetersburg. Belron is now present in33 countries. In China, where Belronentered the market in 2009, it has consolidatedits position by acquiring severalservice points in four large cities.The outlook for 2011 is for continuedorganic sales growth. Belron remainscommitted to delivering outstandingservice to its customers, its insurerand fleet partners and further improvingits operational efficiency.In car rental,Avis Europe took advantage of a generalstabilisation of economic conditionsto improve its operationalperformance while continuing to respondflexibly to certain externalevents, such as the volcanic ash cloudin April. Actions undertaken by AvisEurope enabled an increase in bothsales volumes and market share. In addition,investments made in revenuemanagement continued to bear fruitand contributed to a further increasein utilisation rate and rental revenueper day. These operational developments,combined with continued tightcost discipline, enabled an increase inoperating margin. What’s more, the reductionin net financial charges resultingfrom the Rights Issue carried outin July 2010 enabled the current resultbefore tax to record a strong growth.With its two global brands, Avis andBudget, Avis Europe is well placed tobenefit from the improving economicclimate in most of its main marketsand expects overall volumes to furtherimprove and will continue to seek toenhance pricing. Avis Europe will continueto control both its costs and itsinvestments while taking advantage ofgrowth opportunities. In particular, thecompany wants to invest in its ongoingexpansion in China and other fastgrowing markets. Avis Europe alsowants to develop new mobility customeroffers.“It is thanks to ourremarkable teams thatwe were able to postrecord results in 2010.”2010 has also been a decisive yearfor D’Ieteren, with the completion inJanuary of the acquisition of 16.35%of Belron from Cobepa, signed inSeptember 2009, and representing atotal investment of close to 290 millionEUR. This interest increase had animmediately positive effect, contributing15 million EUR to the growth ofour current result before tax in 2010.Our investment of 111 million EUR inAvis Europe’s Rights Issue in June gaveJean-Pierre BizetManaging directorthe company signifi cant additionalstrength and fl exibility.D’Ieteren’s main asset, however, is our30,000 staff, who are involved day-inday-out in satisfying the needs of motoristsand providing them with an unmatchedservice. It is to our peoplethat we owe our continued success.We warmly salute their commitmentto making our businesses thrive dayafter day. We also wish to thank ourcustomers, our shareholders as wellas all our partners for their loyalty andtheir trust.Roland D’IeterenChairman
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