KINTOS Three-Year Strategy & Roadmap: Flying Nimbus Transformation
Presented to the management team, this strategic roadmap outlines KINTOS' vision to become the preferred mobility provider in Europe. The plan focuses on enhancing customer stickiness, exploring growth strategies, and shifting to a software-centric approach. It addresses key challenges such as asset management, stakeholder engagement, and profitability.
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Presentation Transcript
KINTOS THREE-YEAR STRATEGY AND ROADMAP Flying Nimbus: From an Automobile Company to a Mobility Company Presented to Mr. Tom Fux and Management Team Presented by Nanyang Consulting Company (Aastha, Bea, Eun-Bin, Sylvia) 1 Q1-2022
TABLE OF CONTENTS 1. Executive Summary 2. Problem Overview Problem Statement Internal & External Analysis 2. Alternative Analysis 3. Recommendation Overview Execution Plan Timeline Financial Indicator Risk & Mitigation Plan 4. Conclusion 5. Appendix 2
PROBLEM STATEMENT Our vision is to be the mobility provider of choice for all types of customers. The goal is not to be the biggest, but to be most ready, in every town in Europe. How to create demand from B2B and B2C customers? How to get stakeholders (incl. dealers) on-board? How to manage the asset lifecycle? How to shift from hardware to software? How to increase profitability? 4
KINTOS STRATEGIC ROADMAP Increase customer stickiness & penetration Strategic investments & partnerships Establish KINTO as the provider of choice Leverage current capabilities KINTO should explore growth strategy from customer, investment, and partnership aspects 5
VALUE CHAIN B2C/ B2B Mobility need: high, medium, low End of usage Searching options Product used by customer Choice of competitor/ KINTO solution KINTO has more opportunities to create stickiness with customers 7
MARKET CATEGORIZATION Developed Level of services provided Italy, Spain, UK Germany, Denmark, Norway, Ireland Intermediary Portugal, Sweden, France, Finland, Poland, Belgium Basic Depending on the local mobility needs, KINTO has rolled out its services 8
KINTOS SOLUTIONS Solution Description All-inclusive leasing service Covering all services from TFM One Flexible vehicle subscription services 3-4 year old off-lease refurbished vehicles Flex Car-sharing services for B2B and B2C Pay-per-use Share Ride-hailing service Focus: kids, elderly, disabled Ride B2B car-pooling solution Platform to connect employees Join Multi-modal aggregator platform (incl. route planning, public service ticketing, etc.) Cooperation with different stakeholders needed Go Wide range of solutions, KINTO is trying to cover everything in some way 9
KINTOS SOLUTIONS Solution Future Mobility Market One Flex Sensation Seekers Global Jet Setters Low-End Users Family Cruisers Silver Drivers High-Frequency Commuters Greenovaters Share Ride Join Go Diversified market in the future, with different levels of mobility needs and objectives 10
STAKEHOLDERS Stakeholders + Dealerships 1 3 2 Strategic Partners 2 Keep Satisfied Manage Closely Governments 3 Suppliers 4 1 Power Monitor Keep Informed 4 - - Interest + While dealerships represent an important stakeholder, strategic partners have more power 11
ALTERNATIVES SUPPORTING GROWTH STRATEGY To be the mobility provider of choice for all types of customers Strategic Vision To be the readiest player in every town of Europe Strategic Goal Inorganic Growth Organic Growth Growth Direction & Objectives Define different growth pathways for European market penetration in the following three years Acquire companies and assets that can fulfill KINTO s internal capability gap throughout value chain Business Portfolio / Service Offering Customers (To C & To B) Intermediaries / Channels Business Capabilities Growth Brands Considerations Key Evaluation Criteria Feasibility Desirability Viability KINTO should consider alternatives that support organic and inorganic growth pathways 13
SELECTED ALTERNATIVES Favorability: High Medium Low Impacted Business No. Alternatives Feasibility Desirability Viability Timeline Investment in asset lifecycle management and data analytics software companies 1 KINTO All 2022 Dealers Transformation Plan: leverage key dealers/ sales & marketing team in Toyota s existing market to promote mobility services (specific training, incentives/ rebate/ profit sharing plan) KINTO One KINTO Flex KINTO Go 2 2022-2024 Self-developed car operating system leveraging Toyota s manufacturing capability to integrate with customer s phones and provide customization options for standardized products Start in 2025 3 KINTO All Launch KINTO Go to certain European countries for user acquisition and KINTO brand building, then convert customers in to KINTO One and KINTO Flex KINTO Go KINTO One KINTO Flex 4 2022 Covert TME customers whose car have not been utilized to KINTO Go to provide car sharing service TME KINTO Go 5 2024 6 KINTO Super APP integrating all allowing access to services KINTO All 2024 2022 onwards (ongoing) Expanding Mobility for All vision to mean sustainable and impactful solutions for all of customer s transport needs 7 KINTO All Capability building, partnership enhancement, product development, and market expansion 14
OVERVIEW OF ALTERNATIVES Growth Category No. Alternatives Impacted Business Units External Stakeholders Inorganic Growth Service Offering 1 More investment in car-hailing service companies around the world KINTO All Invested company Capability Gap 2 Investment in asset lifecycle management and data analytics software companies KINTO All Invested company Organic Growth Intermediarie 3 Dealers Transformation Plan: leverage key dealers in Toyota s existing market to promote mobility services (training, incentives/ rebate/ profit sharing plan) KINTO One KINTO Flex KINTO Go Dealers Product Customers 4 Boost Car leasing service by new product development (specialized/ customized cars) and To B customer expansion (public sectors) KINTO One To B customers Product Customers 5 Expand fleet sharing services targeting corporate customers (e.g., logistic sectors, public sectors) leveraging fuel-cell technologies KINTO Share Corporate customers Portfolio 6 Increase partnership with other OEM brands to strengthen KINTO s portfolio of vehicles KINTO All OEM brands Product Business Capability 7 Self-developed car operating system leveraging Toyota s manufacturing capability to integrate with customer s phones and provide customization options for standardized products KINTO All To C customers Market Brand 8 Launch KINTO Go to more European countries for user acquisition and KINTO brand building, and then convert customers in to KINTO One and KINTO Flex KINTO Go KINTO One KINTO Flex To C customers Customers Product 9 Covert TME customers whose car have not been utilized to KINTO Go app to provide car sharing/ hailing service KINTO Go To C customers Product Brand 10 KINTO Super APP integrating all allowing access to services KINTO All To C customers Brand 11 KINTO All To C customers Expanding Mobility for All vision to mean sustainable and impactful solutions to your transport needs (new trend) 15
OVERVIEW OF RECOMMENDATIONS 1 2 3 Strengthening Existing Business Building the KINTO brand Preparing for the future Self-developed car operating system leveraging Toyota s manufacturing capability Investment in asset lifecycle management and data analytics software companies Building on Mobility for All vision to include sustainable and impactful solutions Build synergies between TME and KINTO - convert TME customers whose car have not been utilized to KINTO app to provide car sharing service. Dealers Transformation Plan KINTO GO as the first customer touch point KINTO Super-app Making KINTO as the end-to-end solution for all mobility needs 17
STRENGTHENING EXISTING BUSINESS INVESTMENTS Investment in asset lifecycle management and data analytics software companies Expected Results Determine potential investments through analyzing criteria (incl. cultural fit, strategic objective, synergies) Focus on seamlessly supplementing operations with missing capabilities Establish all required capabilities to support business Aids quick expansion Benefits Quick integration of missing capabilities KINTO can focus on building up other side of the business by leveraging existing capabilities Innovative ideas can spill-over Investment in companies facilitate acquisition of required capabilities 18
STRENGTHENING EXISTING BUSINESS DEALERS Dealers Transformation Plan Expected Results Diversify dealers offerings to make ready for future: integrate TFS, data analytics capabilities Each dealer s opportunities might be different based on e.g., location, space, customer base Dealers realize full potential within new business reality Become active supporters of transformation Benefits Create partnership between dealers and KINTO that creates a win on both sides Bind dealers long-term to KINTO and minimize loss Dealer transformation is the most important step to realize business objectives 19
STRENGTHENING EXISTING BUSINESS KINTO GO KINTO GO as the first customer touch point App combines many services that are useful to customers every day lives, first touch point integrates local infrastructure Roll-out: 1. Countries offering other KINTO services (e.g., Germany) 2. Countries with high likelihood of KINTO success based on criteria: access to public transport, worst traffic congestion, parking capacity, cost of ownership, cost of public transportation Expected Results Customers first learn to love KINTO GO Then they will be open to using other KINTO services Benefits Create stickiness with customers who are not aware of KINTO Facilitate launch of future services through the same app Creating stickiness through GO before actual services are being launched in a market 20
BUILDING KINTO AS A BRAND Mid to long term Short term KINTO Super-app Expanding Mobility for All KINTO Super-app combining all KINTO B2C services in one app One stop solution for all of customer s need Give customers the option to easily choose service as required Growing trend for sustainable modes of travel Social and regulatory pressure for environmentally friendly services, keeping government satisfied Rationale Generate more visibility for all services Creating synergies between different KINTO services Build KINTO brand as the go-to brand for environmentally safe and cost-effective mobility solutions for all Benefits Becoming a strong, recognizable brand is central to KINTO s efforts 21
PREPARING FOR THE FUTURE OPERATING SYSTEM Expected Results Providing customizations in standardized solutions Reduced cost due to standardizations Enhanced experience due to customizations Relationship building Enhanced customer experience More customer preference data for generating insights Build an operating system that integrates easily with customer s mobile devices Enable customers to customize various offerings such as music, lights, seats covers etc. as per requirement Partner with other car manufacturers as a united front against OS giants Trust building with other car manufacturers enabling KINTO to be a multi-brand service provider OS ensures Toyota s long-term independence and partnership opportunities 22
PREPARING FOR THE FUTURE BUILD SYNERGIES BETWEEN TME AND KINTO Expected Results Build a platform for TME customers to utilize free capacity Give existing TME customers a reason to stay connected with the company Expand KINTO to provide car owners/lessees the option rent out their cars on short term basis when not in use Generate more users for the KINTO app Customer satisfaction Enhancing value provided to customers Promoting sustainable mobility Leverage existing capabilities within the Toyota group for future product development 23
OVERVIEW OF IMPLEMENTATION PLAN Strengthening Existing Business Building the KINTO brand Preparing for the future Find and invest in the right companies (culture fit, cost, etc.) to build missing capabilities Identify dealer s needs and opportunities in different locations and build solutions Plan expansion in other locations first through KINTO GO Invest in brand building with sustainability in focus Invest in building a super-app to combine all KINTO services Collaborate with other car manufacturers to get them on- board Build a car operating system Expand KINTO app to include a renting option for existing TME customers Key Activities Return on Investment Improvement in profitability Better dealer relations Increased visibility Enhanced customer satisfaction Revenue increase Increased visibility Enhanced customer satisfaction Revenue increase Better stakeholder relations Key Performance Indicators Enhanced capabilities, better partner relations and brand building 24
TIMELINE & KEY MILESTONES Recommendation Major Activities 2022 2023 2024 2025 2026 Investment in asset lifecycle management and data analytics software companies Strengthening Existing Business Dealers Transformation Activities Expand with KINTO GO Brand building Building the KINTO brand Creating KINTO super-app Self-developed car operating system Preparing for the future Build platform to Covert TME customers whose car have not been utilized to KINTO Go to provide car sharingservice Keep tracking financial and operational results on checkpoints in the following years 25
FINANCIAL INDICATOR: OVERVIEW Revenue Contribution (2026 FCST) Revenue Contribution (2021 ACT) 1.1% 2.9% 98.9% 97.1% KINTO Others KINTO Others Key Figures (2021 ACT) Total Toyota Revenue in Europe (ACT): 260 billion Total KINTO Revenue in Europe (ACT): 3.0 billion Key Figures (2026 FCST) Total Toyota Revenue in Europe (FCST): 230 billion Total KINTO Revenue in Europe (FCST): 6.6 billion KINTO will contribute 3% of the total Toyota business in Europe by 2026 26
FINANCIAL INDICATOR: VOLUME Number of Cars (2021-2026) 300,000 250,000 250,000 250,000 222,222 220,370 200,000 Key Performance Indicator - Managed Assets CAGR: 15% - Units in Operations CAGR: 25% 194,444 185,185 166,667 148,148 150,000 138,889 111,111 100,000 100% management by 2026 92,593 64,815 50,000 - 2021 ACT 2022 FCST 2023 FCST 2024 FCST 2025 FCST 2026 FCST Units in Operations Managed Assets Key Figures (2021 ACT) Total Number of Managed Assets: 111 thousands Total Number of Units in Operations: 65 thousands Key Figures (2021 ACT) Total Number of Managed Assets: 250 thousands Total Number of Units in Operations: 250 thousands KINTO will managed 100% of its units in operations, offering 250,000 cars in service by 2026 27
FINANCIAL INDICATOR: REVENUE KINTO Revenue Trend (2021 2026) 7,000 6,000 5,000 Key Financial Figures Total Revenue in 2026: 6,566 million Total Revenue CAGR: 14% Total Profit in 2026: 1.9 billion Total Profit CAGR: 16% Kinto Share Kinto Join Kinto Go Kinto Ride Kinto Flex Kinto One - - - - 4,000 3,000 - - Revenue from Kinto One CAGR: 15% Contribution of Kinto One: 75% 2,000 1,000 - 2021 ACT 2022 FCST 2023 FCST 2024 FCST 2025 FCST 2026 FCST KINTO One will grow at 15% CAGR, contributing 75% to the total revenue in 2026 28
RISK & MITIGATION PLAN No. Risk Mitigation Clarify current as-is pain points and invest in the best-fit partners with post integration plan Learn from partners and build up own capability in the long run More brand building and development efforts in local market Insist on Mobility for All vision to include sustainable and impactful solutions Customize dealers development and incentives plan based on local context and dealers potential Internal To C products (e.g., KINTO GO) open to dealers facilitate the transformation Investments in asset lifecycle management and data analytics companies need longer time to reconcile with KINTO s existing business 1 Low brand awareness and fierce competition in certain European countries may impede KINTO s market penetration 2 Low willingness and motivation of Dealers (lack of sales capability) to evolve into service provider 3 High investment and commitment required in developing own operating system Consider partnership with other car manufacturers as a united front against OS giants 4 Government is an important stakeholder with high power and interest Lobby for importance of mobility solutions Showcase benefits in terms of capacity planning 5 Mitigate multiple risks by focusing on stakeholder relationships and brand development 29
CONCLUSION 30
KINTOS STRATEGIC ROADMAP Strategic investments & partnerships Establish KINTO as the provider of choice Increase customer stickiness Leverage current capabilities KINTO should explore growth strategy from customer, investment, and partnership aspects 31
APPENDIX 32
