Mercedes Benz South Africa Plant East London

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Rosanna Booker
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1 Mercedes Benz South Africa Plant East London

2 Mercedes-Benz group of companies in South Africa MBSA leadership structure Andreas Engling CEO MBSA & Executive Director Manufacturing Carsten Spohr CFO MBSA & Executive Director Finance & Controlling Abey Kgotle Executive Director Human Resources Florian Seidler Co-CEO & Executive Director Mercedes- Benz Cars Jasper Hafkamp Executive Director Daimler Trucks & Buses Nadia Trimmel Vice President Mercedes-Benz Vans Joerg Essig CEO Mercedes-Benz Financial Services Roy McAllister CEO SMH 2

MBSA - Parts MB Financial Services dfm Employees 600 East London

3 Mercedes-Benz group of companies in South Africa MBSA locations Zwartkop, Pretoria MBSA Headquarters MBSA - Sales and Marketing MBSA - Parts MB Financial Services dfm Employees 600 East London MBSA - Manufacturing MBSA - Group HR dfm regional office Employees 2,659 3

4 East London, South Africa: Plant Management CEO MBSA & Executive Director Manufacturing Executive Director Human Resources Andreas Engling Abey Kgotle Bodyshop C-Class Logistics Controlling Human Resources Mihlali Sogoni Andre de Beer Taryn Woodbridge Goodman Lucwaba Paintshop Quality Management Information Technology TBC Ian Judd Tom Cawood Assembly C-Class Product Planning Procurement Prod. Mat. Aidan Hartwanger Prakash John Steffen Mauersberger CV Manufacturing Gladstone Mtyoko Central Maintenance (TSS) Arvid Bamberger Corporate Affairs Feliciano Janneker 4

5 Mercedes-Benz footprint in South Africa Manufacturing timeline Passenger Cars 1948 Car Distributors Assembly (CDA) founded in East London 1958 First Mercedes-Benz vehicles built by CDA 1982 Assembly of Honda cars starts 1993 Assembly of W201 (C-Class precursor) starts 1994 Assembly of W DCAG acquires 100% shareholding 2000 C-Class CBU Production starts 2007 New W204 C-Class launched 2008 MMC Triton launched 2011 W204 C-Class face-lift 2014 W205 next generation C-Class 2015 Production of 1 millionth Mercedes-Benz passenger car 2016 Start of production of W205 Hybrid vehicles 5

6 More than 50 years of Truck Manufacturing Experience 1962 First L type Mercedes-Benz Truck built 1981 Assembly of Unimog to 1990 1982 Assembly of 0305 Coach Chassis to 1988 1986 Assembly of MB TRAC

6 6 More than 50 years of Truck Manufacturing Experience 1962 First L type Mercedes-Benz Truck built 1981 Assembly of Unimog to Assembly of 0305 Coach Chassis to Assembly of MB TRAC to Assembly of Freightliner 2002 Truck manufacture outsourced to BEE company 2002 Assembly of FUSO 2008 CV Re-integration to MBSA 2008 R50 mil Facility upgrade, capacity for Assembly of OH Bus chassis for Soccer World Cup 2013 Assembly of Rea Vaya bus for Johannesburg tender 2013 Introduction of new series Canter Lift FE6 & FE7 Duonic 2014 Introduction of new MB Axor 3535K twin steer

7 Best products and services Wide and balanced product portfolio MERCEDES-BENZ C-CLASS MERCEDES-BENZ TRUCKS MITSUBISHI FUSO TRUCKS MERCEDES-BENZ BUSES (CHASSIS) 7 Presentation title in CorpoS (Body) 9 pt Department Date

8 8 Unrivalled Partnership and Inspired People The C-Class story: We build it

9 9 Unrivalled Partnership and Inspired People The C-Class story: We build it

Unrivalled Partnership and Inspired People East London plant A history of quality excellence 2006 2007 2008 2009 2010 2011 Synovate Award: Best local manufacturing plant Synovate Award: C-Class

plant for the second consecutive year JD Power: C-Class achieved second place JD Power: Gold Award - best manufacturing plant in Europe, Africa and America in terms of manufacturing quality Synovate

manufacturing plant in Europe, Africa and America in terms of manufacturing quality JD Power: Gold Award- best manufacturing plant in Europe, Africa and America in terms of manufacturing quality 2012

10 Unrivalled Partnership and Inspired People East London plant A history of quality excellence Synovate Award: Best local manufacturing plant Synovate Award: C-Class achieves number one position in the medium segment Synovate Award: C-Class ranks number one in terms of product quality JD Power: Best local manufacturing plant JD Power: Best local manufacturing plant for the second consecutive year JD Power: C-Class achieved second place JD Power: Gold Award - best manufacturing plant in Europe, Africa and America in terms of manufacturing quality Synovate Award: Best Local Manufacturing Plant SA C-Class best Quality, Gold Award in its segment JD Power: Best local manufacturing plant for the fourth consecutive year JD Power: Platinum Award- best manufacturing plant in Europe, Africa and America in terms of manufacturing quality JD Power: Gold Award- best manufacturing plant in Europe, Africa and America in terms of manufacturing quality 2012 JD Power: Silver Award- second best manufacturing plant in Europe, Africa and America in terms of manufacturing quality 2013 JD Power: Silver Award- second best manufacturing plant in Europe, Africa and America in terms of manufacturing quality 2014 JD Power: Silver Award- second best manufacturing plant in Europe, Africa and America in terms of manufacturing quality 2015 Ipsos Quality Award - Best local manufacturing plant 10

11 11 Best products and services Manufacturing the best products

12 Unrivalled Partnership and inspired people Excellent capacity utilisation in W204 to W205 change-over W205 Units in thousands C-Class MMC Commercial Vehicles Technical capacity after W205 implementation by 2015 greatly improved with third shift added 12

Production steadily increasing Benchmark Efficiency East London Plant - a strong partner in the Daimler network PRODUCTION HOURS PER VEHICLE Commercial Vehicles C-Class 5.6 6.3 W205 4.

13 Production steadily increasing Benchmark Efficiency East London Plant - a strong partner in the Daimler network PRODUCTION HOURS PER VEHICLE Commercial Vehicles C-Class W % improvement Passenger Car production volume rounded to the nearest thousand. Commercial Vehicle production volume rounded to the nearest hundred.

Continuously investing to further improve

and preparing C 350 e Launched in Q3 2016 Total

14 Continuously investing to further improve efficiencies and build for the future Improving and preparing C 350 e Launched in Q Total Investment in 2016: R461m Product projects: (including Hybrid) R259.3m Plant projects: (quality improvements etc) R98.6m Structure projects: R98.7m

Best products and services Advanced manufacturing systems and processes New Bodyshop with one of the highest technology levels

laser welding, laser brazing, in-line quality measuring, high strength steel, best fit ).

New assembly lines for all product lines (C-Class, Commercial Vehicles and Buses) based on the Mercedes-Benz production system.

15 Best products and services Advanced manufacturing systems and processes New Bodyshop with one of the highest technology levels worldwide, with increased aluminium content for the W205 (e.g. laser welding, laser brazing, in-line quality measuring, high strength steel, best fit ). Water-based paint and CeramiClear Coat, and optimised KTL and Pre-treatment process. New assembly lines for all product lines (C-Class, Commercial Vehicles and Buses) based on the Mercedes-Benz production system. Just in Time (JIT) / Just in Sequence (JIS) suppliers located in two supplier parks next to the plant. Hybrid production requirements, saw significant changes to our facility such as a new Lifter and High Station installed into the Assembly area to accommodate some of the additional work content. 15

16 Electrifying our passion The C350e Plug-in Hybrid Most advanced shopfloor in South Africa Certified consumption figures of just 2.1 litres of fuel per 100 kilometres. This corresponds to CO 2 emissions of 48 grams per kilometre.

17 Driving performance Built right here in Africa Announcing production of AMG models in South Africa Investment in excess of: R200m

Unrivalled Partnership and Inspired People One of the highest attendance rates in the world 98.8% 98.9% 98.6% 98.4% 98.2% 99.2% 99.2% 99.2 99.

plant specific needs Supports the relationship between the company and the unions/shop stewards Roles and responsibilities, training and development of shop

18 Unrivalled Partnership and Inspired People One of the highest attendance rates in the world 98.8% 98.9% 98.6% 98.4% 98.2% 99.2% 99.2% % Plant level agreement that builds on and/or amends the NBF Agreement and the Recognition Agreement to give effect to plant specific needs Supports the relationship between the company and the unions/shop stewards Roles and responsibilities, training and development of shop stewards Work Organisation Principles e.g. work/shift model, contractors, production calendar, short time fund etc. Performance Based Reward (PBR) People Management Social Investment 18

19 Top Speed to Customer & Innovation New technologies to the region as a result of W205 Complex laser welding RG Brose seat structure Natural fibre pressing JCI door panel In-mould graining JCI door panel Pressing of aluminium skin panels MA Automotive Roll forming Linde & Wiemann - longmember Rear axle carrier welding with cooling fixtures 19

20 Unrivalled Partnership and Inspired People Increase in supplier investment in East London for the W * Just In Sequence - supplier

21 21 Unrivalled Partnership and Inspired People Engaging our communities

22 Our passion drives us to be the best 22

Mercedes-Benz South Africa Annual Business Results Presentation

Mercedes-Benz South Africa Annual Business Results Presentation Sustaining Growth An earlier version of this presentation stated the revenue incorrectly for 2016. The correct figure has been added. The