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44%
56%
Revenue (R66.5bn)
55%
45%
Operating profit (R4.1bn)
Group revenue and operating profit split – September 2016
Automotive and Logistics Equipment and Handling
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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
Equipment southern Africa – operational update
0 1 000 2 000
SouthernAfrica
Order book (Rm)
Jan 2017 Sept 2016
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Southern Africa sales history
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Rbn
Equipment sales Product support
30%
28%
34%
46%
36%
33%
41%46%
50%
56%
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31%
56%
8%5%
2016
39%
50%
6%5%
2015
Southern Africa revenue profile by line of business – September
New equipment Product support Used equipment Rental
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29%
52%
15%
4%
2016
40%
43%
13%
4%
2015
Southern Africa new equipment sales by industry – September
Mining Construction Power Contract mining
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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
Commodity price movement
Source: Global Economic Monitor (GEM) Commodities
Copper, Coal & Iron ore Platinum & Copper
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
-
20
40
60
80
100
120
140
160
2 013 2 014 2 015 2 016 2017M01
Coal Crude oil Iron ore Platinum Copper
USD
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Commodity mix - mining unit sales by commodity - 2012 - 2016
COALGlencore
South 32
Exxaro
Vale
COPPER
Mopani Copper
Vedanta
Barrick
Palabora Copper
DML
FQM
DIAMONDSDeBeers
Debswana
Namdeb
Petra
Catoca
GOLD B2Gold Gold One
IRON ORESishen
KolomelaKhumani
MANGANESE South 32
PLATINUMPGM
Anglo PlatinumImpala
URANIUM Rossing Uranium Swakop Uranium
ZINCSkorpion
Rosh Pinah
Coal25%
Contractors12%
Copper13%
Diamonds13%
Gold4%
Iron Ore5%
Manganese2%
Other7%
Platinum2%
Rental14%
Uranium1%Zinc2%
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Surface mining project outlook
Coal PGM / Zinc / Manganese Diamonds Uranium
Coal of Africa – Makhado (2018)
South 32 – Wwk (2017)
Sekoko – Waterberg (2017)
ResGen – Boikarabelo (2018-2019)
Glencore – Zonnebloem (2018)
Glencore - Makoupan Project (2017)
Vale – Moatize Expansion (2017/18)
ICVL – Minas Benga (2017)
Chitotolo / Catoca (2017) - CompleteDebswana – Orapa Cut 3 (2020)
Valencia (Norasa) – (2020)
Debswana – Jwaneng Cut 9 (2019)
Transhex – Namakwa Diamonds (2018)
Tshipi Borwa (2019)
Vedanta Gamsberg (2017) Exxaro – Belfast Project (2019)Foskor (2017) – Complete
Glencore-Shanduka (2017) - Complete
Avel Moolmans – Sishen - (2017)
Iron Ore
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Underground mining project outlook
Hernic Ferrochrome (2019)
DRC
ANGOLA
NAMIBIA
BOTSWANA
ZAMBIA
ZIMBABWE
MALAWI
MOZAMBIQUE
SOUTH
AFRICA
LESOTHO
Assmang Black Rock (2017-2019)
Venetia Underground Mine
(2020 – 2021)
Platreef Project (2019-2021)
Coal PGM /Zinc/ Manganese Copper Chrome
Kgalagadi Project (2017 - 2020)PGM Maseve (2017 - 2018)
Sasol Longwall (2020)
Palabora Copper (2017 - 2021)Glencore Mopani (2017 - 2020)
Konkola Copper mines (2017 - 2020)
B2Gold Wolfshag (2019 - 2020)
Gold Diamonds
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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)
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)
South Africa - significant orders received
Cat CS533E Vibratory Soil Compactor & Motor Graders
Off Highway Trucks (OHT’s) for Andru Mining & Exxaro
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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
DRC update
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Order book of $56.2m at end January 2017 (September 2016: $21.1m)
Commodity prices, specifically coal, showing signs of recovery – increase in tender activity
Inflationary pressure on operating costs due to strengthening rouble
Capitalise on mining greenfield opportunities driven by improvement in commodities
Protect and grow aftermarket revenues through technology and customer fit solutions
Stronger Rand impacting Dollar translation
Equipment Russia – operational update
0 20 40 60
Russia
Order book ($m)
Jan 2017 Sept 2016
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0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$m
Equipment sales Product support
Russia sales history
24%
25%
29%
36%
28%
27%33%
46%
61%
51%
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43%
51%
1% 4%
2016
34%
61%
1% 4%
2015
Russia revenue profile by line of business – September
New equipment Product support Used equipment Rental
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68%
7%
8%
4%
13%
2016
59%10%
18%
5%
8%
2015
Russia new equipment sales by industry – September
Mining Construction Power Oil and gas Other
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Norilsk Nickel
2xR1600 4xR1600 6xR1700
1xR1300
1xPM102
$2.3m $2.7m $5.2m
Polyus
34x793 / 2x785 / 6x777 / 4x773
$117m prime + $24m aftersales (2018)
Sovrudnik
1xM16
$0.9m
RUSAL
4x777G 2x777G
$3.4m $1.7m
AS Siyaniye (Kupol)
2x745 2x745
$0.9m $0.9m
ZDK Pavlik
2x777D
1x16M3
$2.7m
GV Gold Ugakhan
1x6018 1xD9R
5x777G 1xD6R
$8.7m
Bystrinsky
4x789D 8x789D
$9.3m $18.6m
Muna
37 units
$47m (2018)
Delivered
Firm Orders
Greenfields / Major Projects
Current mining opportunities
Gross
1xD6R 1x725C
1xTH514
1x950GC
1xD6R
$0.3m $1.2m
Kekura
37 units
$21m (2018)
Vasilievsky Rudnik
2xD6R 12x773E
2xD9R
$1.8m $7.5m
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Bystrinsky greenfield success
Prime Product
Contract signed in December 2016 for 12 CAT
789D mining trucks:
• Delivery in 2017
• 4 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
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Polyus package deal success
Mining Truck order:
Confirmation letter received from Polyus in Feb 2017:
• 34 CAT 793D’s - 2018 delivery
• 6 CAT 777G’s - 2017 delivery
• 2 CAT 785C’s - 2018 delivery
• 4 CAT 773E’s - 2017 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 2018-2020
Training and Support Deliverables:
Parts – on site parts warehouse
24 Major components valued at $3.7m
Immersive Simulator
Preventative maintenance bay for 2 trucks
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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
Equipment Iberia – operational update
0 20 40
Iberia
Order book (€m)
Jan-17 Sep-16
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0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
€m
Equipment sales Product support
Iberia sales history
30%
30%
34%
40%37%
33% 35%
41% 44% 44%
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25
41%
44%
12%
3%
2016
37%
44%
16%
3%
2015
Iberia revenue by line of business – September
New equipment Product support Used equipment Rental
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4%
44%
52%
2016
2%
46%
52%
2015
Iberia new equipment sales by industry – September
Mining ConstructionPower
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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
Handling - Operational update
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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
Automotive - operational update
0 100 200 300 400 500 600 700
Car Rental
Avis Fleet
Motor Trading
Sept 2016 Sept 2015
Margin
+14%
-2.1%
+15%
9.0%
9.1%
15.4%
17.0%
2.6%
2.4%
Operating profit (Rm)
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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
Integrated business model delivers value
0
300
600
900
1200
1500
1800
2011 2012 2013 2014 2015 2016
Rm Operating profit by BU
Car Rental Motor Trading Avis Fleet
0
300
600
900
1200
1500
1800
2011 2012 2013 2014 2015 2016
RmOperating profit
Operating profit 1H Operating profit 2H
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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
Car Rental YTD Jan’17 FY’16
Rental days +4.2% +3.8%
Rental revenue per day +2.4% +5.4%
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Avis Fleet YTD Jan’17 FY’16
Finance fleet +1.0% -2.4%
Under maintenance -3.8% -2.3%
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
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Motor Trading YTD Jan’17 FY’16
New unit sales -10% -6.4%
Parts revenue +10% +13%
Service hours +6.0% +0.6%
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
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0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total South African Vehicle Market
Passenger LCV M&HCV
Motor Retail
Forecasts and information by Dr. Neal Bruton
Total market forecast for
2017 calendar year:
Growth of 2.5% - 3.5%
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Automotive – outlook
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
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
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
Automotive
Division
2017 revenue outlook range of R33bn to R34bn (2016: R31.4bn)
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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
Logistics - operational update