Q1 2022 Inchcape PLC Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Nussey - Peel Hunt LLP, Research Division - Analyst : A couple of questions from me. First of all, I wonder if you could just give a little bit more color around margins maybe relative to the fourth quarter of last year in distribution. And I'm thinking particularly the ability to deploy those strategic technology digital-led actions that you highlighted at the Capital Markets Day, Duncan, but also just in terms of the ability to manage underlying cost inflation across the business? And the second question is in relation to Russia, just to be clear, up to the point of sale, you did expect -- or do you expect the business to deliver a contribution, albeit it will be a discontinued activity.

Question: Andrew Nussey - Peel Hunt LLP, Research Division - Analyst : Yes. I just wanted to be clear that up to the point of disposal of the Russian operations, that there will be a positive contribution to profit?

Question: Georgios Alexandre Bela Pilakoutas - Numis Securities Limited, Research Division - Analyst : One on Australia. Just could you expand a little bit on the kind of supply constraints there? It looks like Subarun is slightly underperforming there. So just interested for a little bit of additional color. And also elsewhere in Australia, just an update on the Aussie dollar yen and the impact and the phasing through this year and perhaps next? And then you've kind of reiterated commentary on the M&A pipeline. But presumably other distributors, you're also kind of seeing these strong margins or confidence in the stronger margins persisting. So just kind of interested in if there's any change in the view on the multiples that you're potentially having to pay? And then thirdly was just on Ditec,if you just give a little bit more color on how that deal came about in terms of OEMs, the kind of 3 parties tangoing?

Question: Akshat Kacker - JPMorgan Chase & Co, Research Division - Analyst : Two questions for me, please. The first one on Subaru. There have been announcements that Subaru is suspending certain models like the Forester and Outback for a few months due to engine defects. Just interested in understanding what have your discussions been with the OEM? And how does this affect your business in 2022 and what markets specifically? The second question is on financials. Russia and specifically in Moscow is a clear example of a business that came back very strongly in 2021 versus what it delivered historically or even to your own expectations? Are there any other markets or pockets within your distribution business where we can expect some kind of normalization in the coming years versus what was delivered in 2021?