Dreh ̈on Motors achieved strong growth and financial results in 2018, meeting its strategic objectives with 10.2% organic revenue growth and 13.5% growth in earnings per share. However, the strategic review found some areas for improvement, as asset turnover was low, research and development expenditures did not align with objectives, and workforce productivity was decreasing. The review recommended maximizing asset utilization, boosting innovation, improving productivity through increased training, raising promotional spending, and considering horizontal expansion to address the weaknesses identified.

1. DREH¨ON MOTORS PLC
Annual General Meeting
31, January 2019
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2. Progress in 2018
Major Achivement
Achieved the Ambition 2018 strategic objectives.
10.2% orgnaic revenue growth with CAGR of 10% form 2014.
13.5% growth in EPS, up by CAGR of 13.52% from 2014 level.
Strong Growth in on 3C’s
Cash Balance £1.64 Billion
Cost Controls through “Cost Transformation”
Reurn on Capital Employed 30.2%
Luxury Car Market leader with 3.6% market share
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3. Key Conclusions from the Strategic Review
Positive
The strategy achieved the company’s return to growth.
Dreh¨on dominates luxury car market with 3.6% share.
Dreh¨on has strong profit performance, ROE, ROCE and low
gearing.
Overall workforce loss of productivity minimised because of job
security, above market average pay and substantial investment in
training and development.
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4. Key Conclusions from the Strategic Review
Negative
A low asset turnover indicates inefficiencies in operations.
R&D expenditure misaligned with the strategic objectives.
Promotion budget is significantly lower than the competition.
Workforce productivity is decreasing year-on-year and its lower
than market average.
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5. ROCE Growth On Track for Target of 30%
Recommendation
Maximise Assets Utilisation
Drive revenue growth by
production
Boost innovation and R&D
Productiviy Improvements
Investing in Training
Increse Promotion
Horizontal Expansion
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