Merrill Lynch Conference

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Prosper Chandler
6 years ago
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1 13 15 March 2017

2 Group revenue and operating profit split September Revenue (R66.5bn) Operating profit (R4.1bn) 44% 55% 56% 45% Automotive and Logistics Equipment and Handling

3 Divisional overview Equipment southern Africa

4 Equipment southern Africa operational update 4 Order book of R1.7bn at end Jan 2017 (Sept 2016: R1.3bn) Increase in mining and contract mining activity as commodity prices continue to improve DRC: Major mining customer has indicated intent to resume mobilising a portion of mining fleet Aftermarket activity remains resilient Stronger Rand impacting Dollar translation Order book (Rm) Southern Africa Jan 2017 Sept 2016

5 Southern Africa sales history 5 Rbn % 41% 46% 50% 56% 10 28% 34% 36% 5 30% 46% Equipment sales Product support

6 Southern Africa revenue profile by line of business September % 5% 6% 5% 31% 39% 56% 50% New equipment Product support Used equipment Rental

7 Southern Africa new equipment sales by industry September % 4% 15% 29% 13% 40% 52% 43% Mining Construction Power Contract mining

8 Commodity price movement 8 Upswing in coal and iron ore prices signalling positive global mining recovery Improved oil price sustainable due to OPEC production cuts Recent jump in Cu prices buoyed by production reaching plateau Copper, Coal & Iron ore Platinum & Copper USD M01 Coal Crude oil Iron ore Platinum Copper Source: Global Economic Monitor (GEM) Commodities

9 Commodity mix - mining unit sales by commodity COAL Glencore South 32 Exxaro Vale COPPER DIAMONDS Mopani Copper Vedanta Barrick DeBeers Debswana Palabora Copper DML FQM Namdeb Petra Catoca GOLD B2Gold Gold One IRON ORE Sishen Kolomela Khumani Gold 4% Diamonds 13% Manganese 2% Iron Ore 5% Other 7% Platinum 2% Rental 14% Uranium 1% Zinc 2% MANGANESE South 32 PLATINUM PGM Anglo Platinum Impala URANIUM Rossing Uranium Swakop Uranium Copper 13% Coal 25% ZINC Skorpion Rosh Pinah Contractors 12%

Surface mining project outlook Coal PGM / Zinc / Manganese Diamonds Uranium Iron Ore 10 Debswana Orapa Cut 3 (2020) Chitotolo / Catoca (2017) - Complete Vale Moatize Expansion (2017/18) Debswana

10 Surface mining project outlook Coal PGM / Zinc / Manganese Diamonds Uranium Iron Ore 10 Debswana Orapa Cut 3 (2020) Chitotolo / Catoca (2017) - Complete Vale Moatize Expansion (2017/18) Debswana Jwaneng Cut 9 (2019) ICVL Minas Benga (2017) Valencia (Norasa) (2020) Coal of Africa Makhado (2018) Avel Moolmans Sishen - (2017) South 32 Wwk (2017) Tshipi Borwa (2019) ResGen Boikarabelo ( ) Transhex Namakwa Diamonds (2018) Sekoko Waterberg (2017) Glencore-Shanduka (2017) - Complete Glencore Zonnebloem (2018) Glencore - Makoupan Project (2017) Vedanta Gamsberg (2017) Foskor (2017) Complete Exxaro Belfast Project (2019)

Underground mining project outlook 11 Coal PGM /Zinc/ Manganese Copper Chrome Gold Diamonds Konkola Copper mines (2017-2020) Platreef Project (2019-2021) DRC Glencore Mopani (2017-2020) ANGOLA ZAMBIA

11 Underground mining project outlook 11 Coal PGM /Zinc/ Manganese Copper Chrome Gold Diamonds Konkola Copper mines ( ) Platreef Project ( ) DRC Glencore Mopani ( ) ANGOLA ZAMBIA MALAWI Palabora Copper ( ) Venetia Underground Mine ( ) NAMIBIA ZIMBABWE MOZAMBIQUE Hernic Ferrochrome (2019) BOTSWANA B2Gold Wolfshag ( ) Sasol Longwall (2020) PGM Maseve ( ) SOUTH AFRICA LESOTHO Kgalagadi Project ( ) Assmang Black Rock ( )

South Africa - significant orders received 12 Significant rise in the number of enquiries from contract miners

Mining: 20x OHT (10x 777 s and 10x 773 s) Foskor: 4x 789 s.

12 South Africa - significant orders received 12 Significant rise in the number of enquiries from contract miners May signal an increase in mining activities in the near future Orders received WBHO (R45m): A total of 6 units, mainly construction type of equipment. (6x140k, 4x 336D2L, 2x CS533E, 1x CS78B, 2x232D) Cat CS533E Vibratory Soil Compactor & Motor Graders Andru Mining: 20x OHT (10x 777 s and 10x 773 s) Foskor: 4x 789 s. We have managed to place equipment in this mine where it was previously only competitor equipment. This is a significant milestone. Exxaro: 8x 777 OHT (2 in Grootegeluk and 6 in Leewpan mine) Off Highway Trucks (OHT s) for Andru Mining & Exxaro

2017 Increase in on site presence at Katanga mining by approximately 120 people by end of 2017 Large increase in component

13 DRC update 13 More positive outlook for 2017 than prior year Glencore indicated that they going to invest further in their operations in DRC Increase shareholding in Katanga Mining Katanga ore leach processing plant to be completed in second half of 2017 Increase in on site presence at Katanga mining by approximately 120 people by end of 2017 Large increase in component replacement expected in the following 18 months Joint Venture will benefit from: Cost restructuring that took place in 2016 Increased customer base

14 Divisional overview Equipment Russia

15 Equipment Russia operational update Order book of $56.2m at end January 2017 (September 2016: $21.1m) 15 Commodity prices, specifically coal, showing signs of recovery increase in tender activity Inflationary pressure on operating costs due to strengthening rouble Capitalise on mining greenfield opportunities driven by improvement in commodities Protect and grow aftermarket revenues through technology and customer fit solutions Stronger Rand impacting Dollar translation Order book ($m) Russia Jan 2017 Sept 2016

16 Russia sales history 16 $m % 33% % 46% 51% 25% 61% % 29% 36% Equipment sales Product support

17 Russia revenue profile by line of business September % 4% 1% 4% 34% 43% 51% 61% New equipment Product support Used equipment Rental

18 Russia new equipment sales by industry September % 13% 5% 8% 8% 18% 7% 68% 10% 59% Mining Construction Power Oil and gas Other

19 Current mining opportunities 19 Polyus Gross 1xD6R 1x725C 1xTH514 1x950GC Muna Kekura 37 units $21m (2018) AS Siyaniye (Kupol) 2x745 $0.9m 2x745 $0.9m 34x793 / 2x785 / 6x777 / 4x773 1xD6R 37 units $117m prime + $24m aftersales (2018) $0.3m $1.2m $47m (2018) ZDK Pavlik 2x777D 1x16M3 Norilsk Nickel $2.7m 2xR1600 4xR1600 6xR1700 1xR1300 1xPM102 $2.3m $2.7m $5.2m GV Gold Ugakhan 1x6018 1xD9R 5x777G 1xD6R Sovrudnik $8.7m 1xM16 $0.9m Bystrinsky RUSAL 4x789D 8x789D 4x777G 2x777G $9.3m $18.6m $3.4m $1.7m Delivered Firm Orders Greenfields / Major Projects Vasilievsky Rudnik 2xD6R 2xD9R $1.8m 12x773E $7.5m

Bystrinsky greenfield success 20 Prime Product Contract signed in December 2016 for

Value: $28m Future prospects for up to 20 more CAT 789D s Additional equipment

negotiation Parts on site parts warehouse Service - 24 hours a day, 7 days a week

20 Bystrinsky greenfield success 20 Prime Product Contract signed in December 2016 for 12 CAT 789D mining trucks: Delivery in units shipped in January 2017 Deal Value: $28m Future prospects for up to 20 more CAT 789D s Additional equipment under negotiation: 2 CAT 6030 FS 2 CAT 992K 1 CAT 16M Site service agreement under negotiation Parts on site parts warehouse Service - 24 hours a day, 7 days a week Project Manager appointed Health monitoring and oil sampling Concentrator complex Mine workshop

Polyus package deal success 21 Mining Truck order: Confirmation letter received from Polyus in Feb 2017: 34 CAT 793D s - 2018

following: o Parts and tooling: $24m o Machines: $117m Future prospects: Up to 15 more CAT 785D s in 2018-2020 Training and Support

21 Polyus package deal success 21 Mining Truck order: Confirmation letter received from Polyus in Feb 2017: 34 CAT 793D s delivery 6 CAT 777G s delivery 2 CAT 785C s delivery 4 CAT 773E s delivery Total Deal Value: $141m of the following: o Parts and tooling: $24m o Machines: $117m Future prospects: Up to 15 more CAT 785D s in Training and Support Deliverables: Parts on site parts warehouse 24 Major components valued at $3.7m Immersive Simulator Preventative maintenance bay for 2 trucks

22 Divisional overview Equipment Iberia

23 Equipment Iberia operational update 23 Spanish economic growth driven by buoyant tourism sector, but is not translating into increased activity in the segments served Machine industry in Spain shows growth but concentrated in small equipment Power systems co-generation repowering opportunity in medium term Marine and Digital capabilities development remains key driver for future growth Order book growth driven by new machines orders Focus on cost management and improved efficiencies Order book ( m) Iberia Jan-17 Sep-16

24 Iberia sales history 24 m % 30% % % 37% 33% 35% % 44% 44% Equipment sales Product support

25 Iberia revenue by line of business September % 3% 16% 3% 37% 41% 44% 44% New equipment Product support Used equipment Rental

26 Iberia new equipment sales by industry September % 2% 44% 46% 52% 52% Power Mining Construction

27 Divisional overview Handling

28 Handling - Operational update 28 Agreement to dispose of Handling and Agriculture SA assets into 50/50 JV with BayWa at NAV Trading as BHBW (Pty) Ltd with effect from 1 March 2017 following approval by competition authorities Will continue as the exclusive southern African dealer of Hyster and UTILEV lift trucks and warehousing equipment. Will continue as the exclusive southern Africa dealer of AGCO products, Massey Ferguson and Challenger Extended offering in the agriculture value chain is planned R297m net proceeds received end February 2017 Joint venture to be equity accounted from 1 March 2017

29 Divisional overview Automotive

30 Automotive - operational update 30 Record result in a challenging trading environment Revenue R31.4bn (2015: R28.7bn) up 9.5% Operating profit R1 654m (2015: R1 529m) up 8.2% Operating margin for the year maintained at 5.3% Strong used vehicle profit contribution Operating profit (Rm) Margin Car Rental Avis Fleet Motor Trading +14% -2.1% +15% Sept 2016 Sept % 9.1% 15.4% 17.0% 2.6% 2.4%

31 Integrated business model delivers value 31 Well balanced Automotive portfolio provides resilience Revenue CAGR of 11% delivers operating profit CAGR of 16% Inter-business unit synergies continue to deliver value Targeted capital allocation supports value creation Recently acquired businesses performing in line with expectation Rm Operating profit Operating profit 1H Operating profit 2H Rm Operating profit by BU Car Rental Motor Trading Avis Fleet

Car Rental 32 Sustained growth in rental days Pleasing revenue per day increase Fleet utilisation maintained at 75% Strong used vehicle profit

32 Car Rental 32 Sustained growth in rental days Pleasing revenue per day increase Fleet utilisation maintained at 75% Strong used vehicle profit contribution Customer satisfaction remains above 90% Maintain market leadership Car Rental YTD Jan 17 FY 16 Rental days +4.2% +3.8% Rental revenue per day +2.4% +5.4%

Avis Fleet 33 FY 16 financed fleet negatively impacted by Lesotho contract Return to finance fleet growth in 2017 Customer retention rates remain high Net reduction in OEM maintenance plans due to

33 Avis Fleet 33 FY 16 financed fleet negatively impacted by Lesotho contract Return to finance fleet growth in 2017 Customer retention rates remain high Net reduction in OEM maintenance plans due to lower new vehicle sales Reduced fleet terminations impact used contribution in FY 16 Positive start to this year with strong contribution from used Economic environment impact certain African countries Avis Fleet YTD Jan 17 FY 16 Finance fleet +1.0% -2.4% Under maintenance -3.8% -2.3%

Motor Trading 34 Focused dealership footprint Fewer, Bigger, Better Strategy continues New vehicle market remains under pressure Recent acquisitions support result: Two Mercedes-Benz dealerships (1

34 Motor Trading 34 Focused dealership footprint Fewer, Bigger, Better Strategy continues New vehicle market remains under pressure Recent acquisitions support result: Two Mercedes-Benz dealerships (1 Mar 2016) Majority share in SMD (1 May 2016) Positive contribution from aftermarket revenues Maintained market share Motor Trading YTD Jan 17 FY 16 New unit sales -10% -6.4% Parts revenue +10% +13% Service hours +6.0% +0.6%

35 Motor Retail 35 Total market forecast for 2017 calendar year: Growth of 2.5% - 3.5% Total South African Vehicle Market Forecasts and information by Dr. Neal Bruton Passenger LCV M&HCV

36 Automotive outlook 36 Car Rental Volume and revenue per day increases expected to deliver top line revenue growth, supported by the dual brand strategy Productivity, fleet utilisation and cost focus will maintain strong return on equity Continued positive contribution from used vehicle disposals Avis Fleet Well positioned for continued organic growth Maintain market leadership position and continue to achieve strong return on equity Awaiting outcome of large contract renewals Motor Trading Challenging trading conditions to continue, impacting overall margins Under-performing dealerships and franchises under review Recent acquisitions to contribute positively to revenue and profitability Automotive Division 2017 revenue outlook range of R33bn to R34bn (2016: R31.4bn)

37 Divisional overview Logistics

acquisitions Leveraging investments in Smartmatta, KLL Group

38 Logistics - operational update 38 Trading ahead of last year Benefit from full financial impact of new contracts and acquisitions Leveraging investments in Smartmatta, KLL Group and Aspen acquisitions Diversifying and extending service offerings

39 Diverse blue chip customer base 39

40 13 15 March 2016

Merrill Lynch Conference

Merrill Lynch Conference 14-16 March 2016 Group revenue and operating profit split Sept 2015 2 Revenue Operating profit 47% 58% 53% 42% Equipment and Handling Automotive and Logistics Equipment and Handling Automotive and Logistics