AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2012 Presentation - - PowerPoint PPT Presentation

AUDITED RESULTS

FOR THE YEAR ENDED 30 JUNE 2012

Presentation outline

GROUP OVERVIEW OUR STRATEGY FINANCIAL REVIEW DIVISIONAL REVIEW OUTLOOK

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GROUP OVERVIEW

3

Opencast mining services:

• Drilling
• Blasting
• Load and haul

Short-term plant rental Distribution and aftermarket:

• Rigid and articulated

dump trucks

• Excavator transport

systems Plant leasing Corporate leasing:

• Passenger vehicles
• Commercial vehicles

Value-added services Logistics Distribution, leasing, aftermarket:

• Forklifts
• Mobile cranes
• Port equipment
• Agri tractors

CONTRACT MINING AND PLANT RENTAL CONSTRUCTION AND MINING EQUIPMENT FLEET MANAGEMENT AND LOGISTICS INDUSTRIAL EQUIPMENT

4

Market and valuation data

Eqstra Holdings Limited (Share code: EQS) Sector/Sub-sector classification General Industrials/ Diversified Industrials Share price (29 June 2012) 695c Market capitalisation R3.0bn Enterprise value R9.5bn Net asset value per share 692c (1.0x price to NAV) EV/EBITDA 3.6x Historic Price/Earnings ratio (HEPS) 9.0x Dividend yield – F2012 dividend 4.0%

5

+18.0% +7.9% +35.6% +6.2% +12.0% +15.2%

Salient features (continuing operations)

Revenue Jun 2012 Jun 2011 R8 143m R6 903m Operating profit Jun 2012 Jun 2011 R893m R828m Profit before taxation Jun 2012 Jun 2011 R488m R360m HEPS Jun 2012 Jun 2011 77.2 cps 72.7 cps Dividend per share Jun 2012 Jun 2011 28 cps 25 cps Revenue-generating assets Jun 2012 Jun 2011 R8 884m R7 715m

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Earnings since listing – all operations

Cents per share 170.3 15.1

• 19.6

71.5 115.9 158.7 12.0

• 21.3

77.9 77.2

• 40
• 20

20 40 60 80 100 120 140 160 180

2008 2009 2010 2011 2012

HEPS EPS

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Stakeholder value creation Staff training SHE SED

Group highlights

Stakeholder value creation

15.8m “A” deferred ordinary shares repurchased from the Ukhamba Trust 9.0m ordinary shares repurchased as treasury shares during F2012 and 3.3m ordinary shares repurchased post year end and cancelled Dividend of 28 cps, up 12% The divestiture of Eqstra Mining Services (Bucyrus) business unit (EMS) and New Holland Construction distributorship

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Stakeholder value creation Staff training SHE SED

Group highlights (continued)

Staff training

Eqstra Technical Training Academy

• 90 artisans qualified after 4 years of training

Operator academies

• 2 104 operators trained (2011: 1 620)

Eqstra Leadership Academy

• 26 managers and supervisors graduated

with Wits Business School accreditation Total training spend of R49m (2011: R45m)

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Stakeholder value creation Staff training SHE SED

Group highlights (continued)

Safety, Health and Environment

Zero fatalities during the year Contract Mining and Plant Rental: LTIFR of 0.18 (2011: 0.16), well below target of 0.39 Bamboo carbon offset project – Leandra, Mpumalanga:

• Invested R2.8m, empowering 60 farmers

through a partnership with Food and Trees for Africa

10

Stakeholder value creation Staff training SHE SED

Group highlights (continued)

Socio Economic Development

Ukhamba Trust beneficiaries gained economic benefits from the sale of Eqstra shares Level 3 BBBEE rating maintained Eqstralution – programme to assist technical schools to deliver skilled workers to the SA economy:

• 10 schools adopted countrywide
• 30 learners given apprenticeships at Eqstra

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OUR STRATEGY

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Our strategy

Our business model in simple terms... Distribute or buy asset Add value to asset Lease or rent out asset Sell asset

Business model People Funding Geography

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Our strategy

Above average returns on shareholders funds Long-term funding from banks and capital markets Long-term annuity contracts with clients

Financial gearing is important to us... ...and interest is considered an

• perating cost

...therefore profit before taxation is more relevant to us

Business model People Funding Geography

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Business model People Funding Geography

We operate in sub-Saharan Africa, the UK and Ireland We plan to increase our penetration into sub-Saharan Africa European expansion is a long-term strategy

Our strategy

15

Our strategy

Training and development is a cornerstone of our strategy Our annual training spend should show meaningful future increases We need highly technically skilled employees that are able to

• perate and maintain our full range of mobile equipment

Business model People Funding Geography

16

Our strategy

Maintain a geared balance sheet Further diversification into the capital market Actively manage refinancing and liquidity risk Achieve a staggered maturity profile that allows us to raise 3, 4 and 5-year debt

Business model People Funding Geography

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FINANCIAL REVIEW

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Segmental contributions

Profit before taxation R488 million Revenue-generating assets R8 884 million

45% 5% 26% 24%

Contract Mining & Plant Rental Construction & Mining Equipment Fleet Management & Logistics Industrial Equipment

24% 48% 28% 50% 2% 31% 17%

Revenue R8 143 million

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Revenue overview

3 225 3 707 2011 2012 507 452 2011 2012 1 911 2 161 2011 2012 1 607 1 978 2011 2012 CONTRACT MINING AND PLANT RENTAL CONSTRUCTION AND MINING EQUIPMENT FLEET MANAGEMENT AND LOGISTICS INDUSTRIAL EQUIPMENT

Group revenue: R8 143 million (2011: R6 903 million)

Benga project in Mozambique reached full production Two SA contracts underperformed Regionalised industrial action experienced Corporate action and restructuring reduced focus Lower equipment demand from the mining sector Good end-of-lease remarketing revenues Value-add products unit growth of 57% Core domestic forklift business was resilient despite a strong yen Good contributions from Heavy Lift and UK operations 20

Higher average debt levels resulted in net finance costs increasing 17.3% Interest cover ratio remains well above bank covenant level of 3.5x Rm 2012 2011 % ch EBITDA 2 683 2 343 14.5% Net finance costs (481) (410) 17.3% Interest cover (EBITDA) 5.6x 5.7x

Finance costs

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Rm 2012 2011 % ch Profit before taxation 488 360 35.6% Income tax expense 111 82 35.4% Normal and deferred tax 100 109 Impairment (utilisation) 11 (27) Profit for the year 377 278 35.6% Tax rate 22.7% 22.8%

Taxation and earnings per share

Low tax rate in F2012 due to Benga concession, a 5.8% impact

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Rm 2012 2011 % ch Profit before taxation 488 360 35.6% Income tax expense 111 82 35.4% Normal and deferred tax 100 109 Impairment (utilisation) 11 (27) Profit for the year 377 278 35.6% Tax rate 22.7% 22.8% Basic HEPS (cents) 77.2 72.6 6.3% Diluted HEPS (cents) 76.0 69.8 8.9% Basic EPS (cents) 89.4 66.3 34.8%

Taxation and earnings per share

Basic and Diluted HEPS spread will close due to 15.8m “A” deferred ordinary shares repurchased in 2012

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Shares in issue

millions 2012 2011 Opening weighted average shares in issue 419.4 404.9 Conversion of “B” deferred ordinary shares 14.5 Conversion of “A” deferred ordinary shares* 0.8 Purchase of treasury shares** (0.6) Weighted average shares in issue 419.6 419.4 Dilutionary effect of deferred ordinary shares*** 6.5 16.8 Diluted weighted average shares in issue 426.1 436.2

* On 1 Sep 2011, 1 million “A” deferred ordinary shares converted to ordinary shares ** 9.0 million treasury shares acquired *** On 23 Nov 2011, 15.8 million “A” deferred ordinary shares were repurchased and cancelled 24

Group statement

• f financial position

Rm 2012 2011 % ch

Revenue-generating assets 8 884 7 715 15.2% Leasing assets 8 755 7 625 14.8%

Benga fleet + currency effect, SA and UK forklift fleet growth

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Group statement

• f financial position

Rm 2012 2011 % ch

Revenue-generating assets 8 884 7 715 15.2% Leasing assets 8 755 7 625 14.8% Finance lease receivables 129 90 43.3%

Plant leasing

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Group statement

• f financial position

Rm 2012 2011 % ch

Revenue-generating assets 8 884 7 715 15.2% Leasing assets 8 755 7 625 14.8% Finance lease receivables 129 90 43.3% Inventories 811 986 (17.7%) Trade and other receivables 1 567 1 102 42.1%

Late payments in Contract Mining and Plant Rental

27

Group statement

• f financial position

Rm 2012 2011 % ch

Revenue-generating assets 8 884 7 715 15.2% Leasing assets 8 755 7 625 14.8% Finance lease receivables 129 90 43.3% Inventories 811 986 (17.7%) Trade and other receivables 1 567 1 102 42.1% Cash and cash equivalents 610 191 219.4%

EMS proceeds received

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Group statement

• f financial position

Rm 2012 2011 % ch

Revenue-generating assets 8 884 7 715 15.2% Leasing assets 8 755 7 625 14.8% Finance lease receivables 129 90 43.3% Inventories 811 986 (17.7%) Trade and other receivables 1 567 1 102 42.1% Cash and cash equivalents 610 191 219.4% Other assets 717 647 10.8% Total assets 12 589 10 641 18.3% Total equity 2 980 2 688 10.7% Interest-bearing liabilities 7 153 5 571 28.4%

Leasing asset growth and working capital investment

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Group statement

• f financial position

Rm 2012 2011 % ch

Revenue-generating assets 8 884 7 715 15.2% Leasing assets 8 755 7 625 14.8% Finance lease receivables 129 90 43.3% Inventories 811 986 (17.7%) Trade and other receivables 1 567 1 102 42.1% Cash and cash equivalents 610 191 219.4% Other assets 717 647 10.8% Total assets 12 589 10 641 18.3% Total equity 2 980 2 688 10.7% Interest-bearing liabilities 7 153 5 571 28.4% Other liabilities 2 456 2 382 3.1% Total equity and liabilities 12 589 10 641 18.3%

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Group statement of cash flows

Rm 2012 2011 % ch

Cash generated by operations before working capital movements 2 668 2 387 11.8% Working capital movements (250) 822 Cash generated by operations 2 418 3 209 (24.6%)

Late payments in Contract Mining and Plant Rental

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Group statement of cash flows

Rm 2012 2011 % ch

Cash generated by operations before working capital movements 2 668 2 387 11.8% Working capital movements (250) 822 Cash generated by operations 2 418 3 209 (24.6%) Net cash flows from operating activities 1 821 2 714 (32.9%) Net cash flows from investing activities (2 575) (2 875) (10.4%) Net cash flows from financing activities 1 172 89 Net increase (decrease) in cash and cash equivalents 418 (72) 680.5%

Funding of leasing assets and working capital

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Movement in cash and cash equivalents

610 39 53 59 245 250 540 2 904 424 1 417 2 668 191 1000 2000 3000 4000 5000 At end of the year Increase in finance lease receivable Acquisition Tax paid Share repurchases & dividend paid Increase in working capital Net finance costs Net capital expenditure Disposal of EMS Increase in long-term borrowings Cash generated from operations At beginning of the year Rm 33

Capital expenditure

Rm 2012 2011

Expansion 960 1 337 Contract Mining and Plant Rental 477 931 Construction and Mining Equipment 8 Fleet Management and Logistics 289 307 Industrial Equipment 154 99 Corporate 32 Net replacement (net of proceeds) 1 944 1 447 Contract Mining and Plant Rental 682 608 Construction and Mining Equipment (12) (2) Fleet Management and Logistics 738 531 Industrial Equipment 549 303 Corporate (13) 7 Net expenditure 2 904 2 784

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Financial performance

(229) (20) 100 181 179 263 225 H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

Profit (loss) before taxation Rm

17.8% 18.0% 24.6% 26.3% 25.3% 23.0% 23.7% H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

Capital adequacy ratio

2.5 3.3 3.9 5.3 6.1 5.4 5.8 H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

Interest cover ratio

9.3%

• 0.6%

2.9% 5.1% 5.4% 6.5% 5.5% H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

PBT margin

Continuing and discontinued operations Continuing operations

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27.8% 31.3% 33.5% 31.7% 36.4% 33.8% 32.1% H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

EBITDA to revenue

19.4% 17.6% 13.6% 11.7% 5.5% 5.0% 6.0% H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

Net working capital to revenue

32.5% 30.1% 46.7% 49.3% 50.4% 18.3% 37.4% H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

Net operating cash flow to net debt

2.4%

• 6.2%
• 2.6%

10.5% 11.8% 15.0% 17.2% H2‟09 H1‟10 H2‟10 H1‟11 H2'11 H1'12 H2'12

ROE

Financial performance

Continuing and discontinued operations Continuing operations

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Funding position

Funding facilities (Rm) Facility size Utilised Unutilised RSA bank debt General banking facility 850 850 Liquidity facility* 1 000 1 000 Term facility 3 430 3 430 ECA backed debt Export-Import Bank of the USA 159 159 Coface 168 168 Total 5 607 3 757 1 850 RSA non-bank debt Capital markets 2 160 EQS01 270 EQS02 50 EQS04 411 EQS05 900 Commercial paper 529 Total SA funding 5 917 Rest of World 1 334 1 216 118 Total funding 7 133 New

* Liquidity facility with 13-month notice period to back commercial paper 37

Funding diversification

58% 37% 5% Bank debt Capital market and CP ECA's 83% 11% 6% South Africa Rest of Africa United Kingdom

Geographical diversification of debt South African debt diversification

Down from 90% at June 2011 Down from 71% at June 2011

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South African debt maturity profile

Rm

• 600
• 400
• 200

200 400 600 800 1 000 1 200 1 400 1 600 F2013 F2014 F2015 F2016 F2017

Cash Commercial paper ECA Bonds Long-term facilities Commercial paper backed by a 13-month notice liquidity facility

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DIVISIONAL REVIEW

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CONTRACT MINING AND PLANT RENTAL

Contract Mining and Plant Rental

Rm 2012 2011* % ch

Revenue-generating assets 4 517 3 912 15.5%

* Income statement reclassified for segment reallocations

Benga currency impact of R161 million

42

Contract Mining and Plant Rental

Rm 2012 2011* % ch

Revenue-generating assets 4 517 3 912 15.5% Inventories 97 61 59.0% Other assets 945 791 19.5% Operating assets 5 559 4 764 16.7% Revenue 3 707 3 225 14.9% EBITDA 1 137 966 17.7% Operating profit 322 322 Asset reversal (impairment) 37 (50)

* Income statement reclassified for segment reallocations

Insurance claim received in current year

43

Contract Mining and Plant Rental

Rm 2012 2011* % ch

Revenue-generating assets 4 517 3 912 15.5% Inventories 97 61 59.0% Other assets 945 791 19.5% Operating assets 5 559 4 764 16.7% Revenue 3 707 3 225 14.9% EBITDA 1 137 966 17.7% Operating profit 322 322 Asset reversal (impairment) 37 (50) Net finance costs (277) (221) 25.3% Profit before taxation 109 51 113.7% PBT margin 2.9% 1.6% EBITDA to net finance costs 4.1x 4.4x

* Income statement reclassified for segment reallocations 44

Mining contracts

Client Mineral/ Service Location Monthly volumes End date Platmin - Pilanesberg Platinum Mine Platinum Northam, North West 1 250 000m3 03/2014 ARM/Norilsk JV - Nkomati Nickel Nickel Machadodorp, Mpumalanga 1 200 000m3 09/2014 ARM/Norilsk JV - Nkomati Nickel Drilling Machadodorp, Mpumalanga 100 000m 12/2015 Tharisa Minerals Chrome Marikana, North West 600 000m3 06/2017 Rio Tinto - Benga Mine Coal Tete, Mozambique 1 900 000m3 12/2015 DMO Project Coal Witbank, Mpumalanga 800 000m3 m-t-m Khutala Colliery Coal Ogies, Mpumalanga 500 000m3 04/2013 Total Coal – Dorstfontein East Coal Kriel, Mpumalanga 1 300 000m3 01/2016 Coal of Africa - Vele Colliery Coal Musina, Limpopo 350 000m3 12/2016 45

Improved commodity and regional diversification Two contracts concluded - Eland and Marikana Two underperforming contracts - PPM and Nkomati Nickel Vele contract ramp-up slower than expected Good performance at Benga and Dorstfontein Industrial relations impacted results, however corrective action has been taken Maintenance costs peaked in H2‟12 Plant rental performed well in Namibia and Mozambique

Operational overview

Revenue by commodity

46

25% 35% 63% 84% 49% 37% 19% 26% 28% 18% 16%

0% 25% 50% 75% 100% PGM's Energy (coal & uranium) Other and plant rental

Jun „09 Jun „10 Jun „11 Jun „12

CONSTRUCTION AND MINING EQUIPMENT

Rm 2012 2011* % ch

Revenue-generating assets 158 90 75.6%

* Income statement reclassified for segment reallocations

Construction and Mining Equipment

Ramp-up of plant leasing

48

Rm 2012 2011* % ch

Revenue-generating assets 158 90 75.6% Inventories 269 544 (50.6%)

Construction and Mining Equipment

Reduction in inventory from sale of EMS

* Income statement reclassified for segment reallocations 49

Rm 2012 2011* % ch

Revenue-generating assets 158 90 75.6% Inventories 269 544 (50.6%) Other assets 269 249 8.0% Operating assets 696 883 (21.2%) Revenue 452 507 (10.8%) EBITDA 11 30 (63.3%) Operating profit 5 33 (84.8%) Net finance income (costs) 3 (5) Profit before taxation 1 24 (95.8%) PBT margin 0.0% 4.7% EBITDA to net finance costs 3.7x 6.0x

Construction and Mining Equipment

* Income statement reclassified for segment reallocations 50

Operating overview

Division now only distributes:

• Terex Rigid and Articulated Dump Trucks with payload capacities
• f 25 to 100 tonnes
• Sleipner excavator transport systems

The division is currently refocusing operations following a period of transition and turnaround Terex off-highway trucks have a significant value proposition advantage Key objective is to increase sustainable income streams in aftermarket services and parts

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FLEET MANAGEMENT AND LOGISTICS

Fleet Management and Logistics

Rm 2012 2011 % ch

Revenue-generating assets 2 804 2 576 8.9%

Unit growth, mix and asset replacement values increased

54

Fleet Management and Logistics

Rm 2012 2011 % ch

Revenue-generating assets 2 804 2 576 8.9% Inventories 53 44 20.5% Other assets 282 213 32.4% Operating assets 3 139 2 833 10.8% Revenue 2 161 1 911 13.1% EBITDA 988 913 8.2% Operating profit 357 316 13.0% Net finance costs (137) (130) 5.4% Profit before taxation 219 186 17.7%

Solid growth in a flat corporate leasing market despite start-up costs in logistics

55

Fleet Management and Logistics

Rm 2012 2011 % ch

Revenue-generating assets 2 804 2 576 8.9% Inventories 53 44 20.5% Other assets 282 213 32.4% Operating assets 3 139 2 833 10.8% Revenue 2 161 1 911 13.1% EBITDA 988 913 8.2% Operating profit 357 316 13.0% Net finance costs (137) (130) 5.4% Profit before taxation 219 186 17.7% PBT margin 10.1% 9.7% EBITDA to net finance costs 7.2x 7.0x

56

Operational overview

Good remarketing performance and a 57% unit growth in value-added products Maintained negative working capital Clover SA outsource agreement renewed for 10 years City of Johannesburg contract for managed products on commercial vehicle fleet secured from 2Q F2013 Divisional ROE of 20.1%

50 100 150 200 250 500 1 000 1 500 2 000 2 500 3 000 2008 2009 2010 2011 2012 Revenue Leasing fleet Profit before taxation

Rm Rm

57

INDUSTRIAL EQUIPMENT

Industrial Equipment

Rm 2012 2011* % ch

Revenue-generating assets 1 523 1 201 26.8%

* Income statement reclassified for segment reallocations

Higher growth in leasing versus cash sales

59

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%

* Income statement reclassified for segment reallocations

Good contributions from Heavy Lift and the UK

Industrial Equipment

60

Industrial Equipment

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 61

1200 3200 5200 7200 9200

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

UK forklift market (units)

Regional forklift markets

Market growth of 10.6% for F2012 (F2011: +24.8%)

500 1000 1500 2000 2500 3000

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

SA forklift market (units)

Marginal growth of 3.8% for F2012 (F2011: +47.1%) 4Q F2012 growth rebounded 13.0% y-o-y after flat growth in first three quarters

F2012 +3.8% y-o-y F2012 +10.6% y-o-y

Source: WITS orders placed on factories 62

Operational overview

60% of forklifts sold into SA leasing book, 68% in the UK 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%

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19% 23% 52% 6% 12% 28% 55% 5%

Distribute Rent/lease Value-add Sell

Value chain statement

Revenue, excluding corporate office (Rm) Distribute Rent/lease Value-add Sell Contract Mining and Plant Rental 512 3 195 Construction and Mining Equipment 282 19 151 Fleet Management and Logistics 985 785 391 Industrial Equipment 655 852 453 18 Total 937 2 368 4 584 409

2012 2011

64

Order books (Rm)

Total order book at 30 June 2012 = R17 325m

9 871 11 800 13 596 12 437 12 840 5 262 4 704 4 362 4 674 4 788 2 192 1 889 1 673 1 602 1 466 5 000 10 000 15 000 20 000 Jun-12 Dec-11 Jun-11 Dec-10 Jun-10

Construction and Mining Fleet Management and Logistics Industrial Equipment

65

OUTLOOK

66

Prospects

Improved performance from Contract Mining and Plant Rental expected:

• Corrective actions taken to address contract management issues
• Optimisation of its asset base

Other divisions remain positioned for growth:

• Secured long-term contracts
• Increased client penetration
• Additions to the group‟s product range
• Value-added services

67

Outlook

The depressed global macro environment and the European debt crisis will result in lower GDP growth in Southern Africa Government infrastructure spending, if executed, will support leasing and equipment sales growth Business confidence is expected to remain weak with private sector delays in capital expenditure

68

QUESTIONS?

69

Contacts

Walter Hill (CEO) +27 (0)11 966 2509 whill@eqstra.co.za Jannie Serfontein (CFO) +27 (0)11 966 2163 jserfontein@eqstra.co.za Investor relations: Gavin Bantam +27 (0)11 966 2042 gbantam@eqstra.co.za www.eqstra.co.za

70

APPENDICES

71

Capital adequacy model

The group is managed according to a capital adequacy model (capital adequacy = total equity / total assets) Capital is allocated at a group and divisional level in line with different asset classes, as illustrated in the table below:

Contract Mining and Plant Rental Construction and Mining Equipment Fleet Management and Logistics Industrial Equipment Property, plant and equipment 25% 25% 25% 25% Long-term leasing assets 20% 25% 15% 15% Short-term leasing assets 35% 35% 35% 35% Logistics assets 25% Inventories 35% 35% 35% 30% Accounts receivable 15% 15% 15% 15% Other assets 15% 15% 15% 15%

72

Gearing levels

Group Contract Mining and Plant Rental Construction and Mining Equipment Fleet Management and Logistics Industrial Equipment

• Target 300%-350%
• Actual 220%
• ROE target = 20%+
• Dividend pay-out

target = 30%-35% of headline earnings

• Target 250%-300%
• Actual 285%
• Gearing will be

reduced should financial performance not improve

• Target 50%-70%
• Actual 160%
• Least gearable division

in absence of significant aftermarket revenues

• Target 550%-600%
• Actual 233%
• Most gearable division

due to long term annuity contracts

• Target 350%-400%
• Actual 238%
• Distribution and

aftermarket mix reduces gearing appetite

• UK operations

capable of higher gearing

73