General Manager and Manager, Operations Presentation

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General Manager and Manager, Operations
Presentation

• 2008 StateFleet Conference

YEAR IN FOCUS
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Year in Focus - Business

• Fleet Management System
• General Risk Fee
• New clients for Fleet Management Services
• Used car market
• The great financial meltdown
• Operational changes
• Process changes
• Innovations
• Future

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Year in Focus Staffing

• Many internal changes
• New starters
• Ziggy Luc Repairs
• Daniel Jensen Marketing
• Michelle Bolthouse On Road Services
• Departures
• Mark Waller Marketing
• Harley McCarthy Leasing

4
Used Vehicle Market

• Significant downturn in market conditions
  10-15 price drop depending on category
• Clearance rates holding between 80-90
• Large passenger vehicles prices continuing to
  soften
• Light commercial market shrinking as tradespeople
  hold vehicles for longer
• Regional sales subdued due to down turn in
  regional economies
• Internet and fixed price sales increasing

5
Financial Meltdown

• Cost of funds have risen
• Availability of credit has been tightened
• Uncertainty has created a reluctance to commit to
  large purchases
• New car sales down
• Import costs up due to exchange rate
  deterioration
• StateFleet will use reserves to maintain
  stability as much as possible
• Impact to date has been minimal but expect it to
  increase

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Lease Rates
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Bruce Mitchell, Manager Operations
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Operational Changes

• Improved Lease term flexibility has resulted from
  the system upgrade
• Agreement from TCorp / Treasury to reflect the
  changes occurring in the Fleet Management sector
• Changes to Categorisation of Vehicles
• Improved Schedule F- Vehicle Condition Assessment
  
• Changes to Delivery Checklist and improvements
  Delivery process generally

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State Government Contracts

• C653 - Supply of Vehicles to Government.
• C603/604 Vehicle Disposal Contract.
• C366 Fuel and Associated products
  and E10 / E2 legislation.

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Government Fleet Statistics
SIZEPassenger 18200 (71)Commercial 7600
(29) Total 25800
OWNERSHIPLeased 24100 (93)Owned 1700
(7)Total 25800
MANAGEDPassenger 14500 (74)Commercial 5100
(26)Total 19600
TRANSMISSIONPassenger - Auto 17400 (96)
- Man 800 (4)Commercial -
Auto 4600 (60) - Man
3000 (40)
FUEL TYPEPassenger - Diesel 850 (5)
- ULP 16600 (91)
- LPG 750 (4)Commercial - Diesel
3900 (51) - ULP 3500
(48) - LPG 200 (1)
CYLINDERSPassenger - 4 cyl 12600 (70)
- 6 cyl 5350 (29)
- 8 cyl 250 (1)Commercial - 4
cyl 3550 (51) - 5cyl
800 (8) - 6 cyl
3100 (40) - 8 cyl 150
(1)
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Cleaner Fleet Initiative

• Whole of Government Score was11.45 12 was the
  target (but we did not adjust baseline after the
  review of scores for Euro 3 in Jan 2006 . had we
  done so we actually made the target).
• Fleet Profile change small/medium/hybrid was
  14 in 2005 37 in 2006 and at 1/7/08 was 67
  Large (incl Police and SUV medium/large) is now
  33 Hybrids total 357 which is 2 of govt
  passenger fleet
• New targets have been set and are with Deputy
  Premier (Minister for DECC) to be announced.
  Will be a 3 year target for Passenger 3 year
  target for Commercial Wont be a set target per
  year rather targets are for 30th June 2011
  Targets are ambitious but achievable

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Cleaner Fleet Initiative
Graph showing EPS by category
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Cleaner Fleet Initiative
Graph showing EPS by fuel type
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The Future

• Government Mini budget in November..
• Increased pressures on Agencies to minimise
  costs.
• Increased availability of small diesels.
• Manufacturers production in Aust of small cars or
  hybrids.
• Union pressure on Federal Govt to support local
  manufacture of vehicles.

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John Hurley, Information Services Manager
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Managing Quotations
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Multiple Quotations
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Managing Reporting
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Questions ?