INDUSTRIAL EQUIPMENT Investor Day 2012 Gary Neubert – divisional CEO
INDUSTRIAL EQUIPMENT
Investor Day 2012
Gary Neubert – divisional CEO
Vision
To be the significant industrial and agricultural equipment supplier in
our chosen world markets, creating prosperity for and exceeding
expectations of:
• Done with Passion
• Always Growing
Our Stake Holders
Our People
Our Customers
2
Positioning Statement
“Eqstra Industrial Equipment is the Partner of Choice
(Employer, Supplier, Investment) in distribution, rental &
value-added services in the Industrial, Material Handling
and Agricultural Equipment market; offering a total
solution, providing best-in-class brands and delivering
optimal life-time value for our customers.”
3
EIE Divisional Structure EIE
CEO Gary Neubert
SIE Managing Director Denny Reddy
Toyota BT
Raymond Flexi
Industrial Power Hawker /
Hoppecke Batteries
Clark Forklifts Hako
JCB Teletruck / Skidsteer Loaders
Eqstra Compressed Air
Air Supreme Nu Air / Fini
EHL Director Ronald Erasmus
Konecranes (SMV)
Terberg SweFrame
Terex / Broderson
Mobile Cranes
Impact Managing Director
Terry Kendrew
Cat Lift Trucks
Kalmar
Combilift
Flexi
JLG
EAE General Manager Eugene Jonker
Same Deutz Fahr
600SA Director Candice Davis
Sierra Delta Brutus
Compactors
Safelift
Altec
Socage
Skiploaders
Bucher Schoerling
Road Sweepers
Fassi Cranes
EIE Financial Director Shumani Tshifularo EIE Human Capital
Manager Karen Keen
EIE Marketing & Communications G.M.
Karen Van Digilen
4
Product / Services
Current Future Priority Product /
Service
Forklift Sales H P/S
Hawker / Hoppecke Batteries and Chargers
H P/S
Fleet Management Systems H P/S
Industrial Cleaning Equipment – Hako H P/S
Parts & Accessories / Attachments H P/S
Service / Maintenance H S
Rental H P/S
Agricultural Equipment H P/S
Battery Bay Management H S
Compressors H P/S
Operator Training H S
Load Testing H S
Cranes & Port Equipment H P/S
5
Operational overview
Total staff compliment : 1 531 employees (SA & UK)
Units in operation : 26 310 units (SA)
Rental fleet SA Long term rental : 4 264
Short term rental : 2 815
Maintenance only : 1 966
Average age of fleet : 27 months
Rental fleet UK
Long term rental : 2 464
Short term rental : 1 096
Maintenance : 602
Average age of fleet : 25 months
Market share SA : 33%
Market Share UK : 4%
6
Target Markets
Manufacturing
Mining
FMCG
Warehousing
Container handling
Port operations
Agriculture industry
Airports
Municipalities
Waste management
Government
Contract cleaning
7
Major Competitors
Forklifts SA – Linde
– Hyster
– Goscor (Crown/Doosan)
Forklifts UK – Jungheinrich
– Toyota
– Briggs (Hyster/Yale)
– Linde
Agri – John Deere
– Landini
– New Holland
– Massey Ferguson
Heavy Lift – Liebherr
– Kalmar
– Sany
8
OUR RESULTS
9
Last reported financial results
Rm 2012 2011* % ch
Revenue-generating assets 1 523 1 201 26.8%
Inventories 392 337 16.3%
Other assets 447 354 26.3%
Operating assets 2 362 1 892 24.8%
Revenue 1 978 1 607 23.1%
EBITDA 544 473 15.0%
Operating profit 204 186 9.7%
Net finance costs (88) (83) 6.0%
Profit before taxation 130 101 28.7%
PBT margin 6.6% 6.3%
EBITDA to net finance costs 6.2x 5.7x
* Income statement reclassified for segment reallocations
10
Operational overview
60% of forklifts sold into SA leasing book, 68% in the UK (For every R100m increase
in the Rental fleet book there will be a R9m negative impact on profitability in
year 1)
SA forklift market share dropped marginally due to yen strength and effects of
tsunami
Successful integration and improved performance from Heavy Lift business unit
(Konecranes port equipment and Terex mobile cranes)
Positive performance from Impact Handling UK (Cat Lift Trucks)
Acquisitions made post year end: 600SA and Air Supreme
ROE of 25.0%
11
Recent major orders (July to Nov)
Materials handling – Massbuild (Toyota, BT) – Mass Discounters (Toyota, BT) – Toyota Motors South Africa (Toyota) – Woolworths (BT) – Langeberg & Ashton (Toyota) – Kraft Foods (Toyota) – Coca Cola (Toyota) – Poly Oak (Toyota) – Bridge Shipping (Toyota) – Forklift & Allied - Namibia (Toyota) – Cold Chain (BT) – Lake International (BT) – Danone (Flexi)
Heavy Lift
– Transnet (Terberg Terminal tractors) – Namport (Terberg Terminal Tractors) – Namport (Konecranes Reach Stackers)
600 SA
– Zimbabwe (Waste Compactors)
12
OUR BRANDS
13
Toyota Forklift
Toyota Forklift founded
in 1984
BT Warehousing Equipment 1993 Raymond 2006
Flexi 2010
14
Clarklift
Introduced Clark Forklifts in 1999
Hako Industrial Cleaning Equipment 2008
JCB Teletruck 2007
JCB Skidsteer
JCB All Terrain Forklift
15
Industrial Power
Hawker Batteries & Chargers
2008
Hoppecke Batteries & Chargers
2012
16
Compressed Air
ABAC Compressors
2011
NuAir 2012
Most recently, Air Supreme
2012
17
Agriculture
Same Deutz Fahr Tractors and
Combine Harvesters 2009
18
Heavy Lift
Terex Mobile Cranes 2008
Broderson 2011
Konecranes & Terberg 2011
19
20
Large & medium container equipment
Straddle Carrier SC Ship-To-Shore Crane STS Rubber-Tyre-Gantry RTG
Terminal Tractor
Rail-Mount-Gantry RMG
Container Lift Truck FC Reach Stacker RST – EC Container Lift Truck EC
Heavy Lift
20
Lifting, Loading & Waste Management 2012
600SA
21
AFRICAN FOOTPRINT
22
African Market Coverage
23
UK FOOTPRINT
24
25
New Location 2012
Current Impact Locations
Belfast Mechanical
Northern Ireland
Davcon Ltd
Southern Ireland
Western Mechanical
Handling
South West Acclaim Handling Ltd
South East
Hiremech Ltd
London
B & S Rentals
North East
NORTHERN IRELAND
Belfast Mechanical
Handling
REPUBLIC OF IRELAND Davcon Rentals Ltd (Dublin)
Western Mechanical Handling
B & S Rentals
Hiremech
Acclaim Handling
Ltd
DEALERS:
South Wales Fork Truck Hire Ltd
South Wales Fork Trucks
Hire Ltd
Impact Handling – UK Coverage
26
MARKET STATISTICS
27
Top 20 industrial Lift truck suppliers in 2011
28
Worldwide Lift Truck Market
29
Total Units Ordered from Factories
Note: Figures based on calendar year
3537
5285 5489
7971 8114
8814
4353
5692
8375
9112 9385
9667 9956 10156 10359
0
2000
4000
6000
8000
10000
12000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
SA Forklift Market
30
2668 2847
4428 4327
5280
4677
5724
5084
7157
5550
5155
7379
8200
7800
8190
7500 7500
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tractor sales and forecasts
SA Market – Tractor Deliveries
31
INDUSTRIAL EQUIPMENT