Analyst Presentation Barloworld Automotive 29 February 2008
Automotive Division Automotive Division Overview Business Overview Motor Retail Car Rental Fleet Services Importation & Distribution Joint Ventures South Africa Southern Africa Australia Southern Africa Scandinavia Southern Africa Southern Africa Motor Retail Car Rental Fleet Services Areas of Operation Brands Southern Africa Scandinavia (Denmark, Norway, Sweden) Australia 2
General Information Employees 7 937 Countries 10 Automotive Principals Car Rental & Fleet Services Principal Automotive Division Overview Sense of Scale BMW, Chrysler,Daimler, FHI, Ford, General Motors, Nissan, Suzuki, Toyota, VW Avis Europe plc. (Avis & Budget) Car Rental locations >400 Motor Retail locations 76 Key Indicators FY 06 FY 07 Rental Days 6.6m 7.3m New & Used retail units sold 88 538 91 603 Vehicles under finance & maintenance 60 494 101 910 New vehicles sold per dealership per month 70 73 3
Automotive Division Overview Financial Results FY2007 Revenue: R15.4bn (FY 06: R13.6bn) R16.8bn including proportionate share of associates (FY 06: R14.9bn) Operating profit: R714m (FY 06: R615m) R757m including proportionate share of associates (FY 06: R671m) Motor vehicle usage solutions strategy improves margin to 4.6% (FY 06: 4.5%) New & Used retail units sold 91 603 (FY 06: 88 538) Margin +109% +17% +21% -12% +30% * 26.9% 22.6% 7.1% 6.1% 1.8% 2.3% 2.0% 1.3% 10.8% 10.0% * Trade sales on like for like basis with 2007 4
Southern Africa Improved rate and rental day growth in SA Continued focus on strategic projects Utilisation, fleet size and interest rates soften results Scandinavia Focus on turnaround: resources allocated Changing market conditions pressure operations Automotive Division Overview Car Rental 25% Leading Indicators 20% 15% 10% % Growth 5% 0% -5% -10% -15% -20% Rental Days Rate Per Day Fleet Utlisation Fleet Size People Productivity SA '08 SA FY07 Scan '08 Scan FY07 5
Automotive Group Overview SA Vehicle Market 60 Naamsa Dealer Market (SA) 50 Unit Sales in '000s 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Dealer Passenger 2007 2007 2006 2005 6
Fewer, Bigger, Better Strategy continues 75 new vehicles sold per dealership per month (FY 07: 73) Improved efficiency and effectiveness Southern Africa Focused brand strategy resilient in current climate Improved market share in declining market Australia Sound operations continue to deliver value Automotive Division Overview Motor Retail 50% Leading Indicators 40% 30% % Growth 20% 10% 0% -10% -20% New Vehicle Units Used Vehicle Units Parts Turnover Service Hours F&I Net Profit SA ' 08 SA FY07 Aus '08 Aus FY07 7
Automotive Division Overview Fleet Services Business model delivers value New contracts secured Benefits accrue from government contracts 120% Leading Indicators 100% 80% % Growth 60% 40% 20% 0% Total Fleet Under Finance Under Maintenance Under Maintenance Ext SA '08 SA FY07 8
Automotive Division Overview Importation and Distribution Resources allocated Currency management continues to receive focus New models introduced in 2008 Principal engagement 20 19 JPY:ZAR 18 17 16 15 14 13 12 11 10 Feb 03 Mar 03 Apr 03 May 03 Jun 03 Jul 03 Aug 03 Sep 03 Oct 03 Nov 03 Dec 03 Dec 03 Jan 04 Feb 04 Mar 04 Apr 04 May 04 Jun 04 Jul 04 Aug 04 Sep 04 Oct 04 Nov 04 Nov 04 Dec 04 Jan 05 Feb 05 Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Nov 05 Dec 05 Jan 06 Feb 06 Mar 06 Apr 06 May 06 Jun 06 Jul 06 Aug 06 Sep 06 Oct 06 Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 JPY 9
Automotive Division Overview Activity Awarded Soweto Toyota (Maponya / Barloworld) Acquired Pretoria East Toyota Awarded Lesotho Government Fleet Contract Secured Avis License to 2018 for southern Africa Exited Renault franchise Economic Climate Solutions offering protects against tough SA environment Electricity Plans in place to cope with load shedding Value Drivers Assets Turn Margins Interest Costs Growth Focus Areas Working capital Optimising rental fleet (Utilisation) Controlling interest costs Expense Management 10
Strategy Continues Business model delivering value Benefits of inter and intra-business unit synergies being realised South African aspects Individual business units well structured Complementary components Balanced portfolio Appropriate for environment Australian Motor Retail operations perform well Attractive property portfolio Poised for growth Scandinavian Car Rental disappoints Management structure and resources allocated Identified problem areas being addressed Exchange rates negatively impact on Subaru Southern Africa Experienced Executive and Management teams 11
Automotive Group Overview Business Explanation We provide a range of integrated motor vehicle usage solutions 12
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