[PPT] - INT ERIM RESUL T S FO R T HE SIX MO NT HS ENDED 31 DE CE MBE PowerPoint Presentation

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

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INT ERIM RESUL T S

FO R T HE SIX MO NT HS ENDED

31 DE CE MBE R 2015

SLIDE 2

AG ENDA

3

G RO UP O VERVIEW

10

DIVISIO NA L REVIEW

20

FINA NC IA L REVIEW

35

O UT LO O K

37

Q UEST IO NS

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

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G RO UP O VERVIEW

SLIDE 4

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

L E GACY Outda te d funding mo de l Ma rke t c o nc e rns Ca pita l ma rke t Ge a ring limite d divisio na l g ro wth Unb a la nc e d risk po rtfo lio during c o mmo dity pe a k Unre a listic ROE ta rg e ts

ST RAT EG Y: BAC KG RO UND

CURRE NT RE AL IT Y Co re b usine sse s he a lthy L e a de rs in the ir fie lds; stro ng ma na g e me nt Ge o g ra phic a l o ppo rtunitie s in sta b le ma rke ts Gro wing ma rke t sha re a nd o rde r b o o ks E xpa nding se rvic e s mo de l Mining se c to r c a pita l c o nstra ints =

ppo rtunitie s

Pro a c tive e ng a g e me nt with funde rs = b a la nc ing ma turity pro file

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

I mple me nta tio n o f 2020 str

ate gy is b a se d o n: Ba la nc e d c a pita l struc ture E vo lving diffe re ntia te d se rvic e s b usine ss mo de l E uro pe a n ma rke t e xpa nsio n Re c a lib ra te mining a sse ts; fo c us o n mining se rvic e s Ope ra ting e ffic ie nc ie s/ ma rg in impro ve me nt Stro ng e a rning pe r sha re a nd c a sh g e ne ra tio n

ST RAT EG Y 2020

“Mo ving va lue globally, thro ug h powe r

ful par tne r ships a nd c r e ative solutions”

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

Se lling o f mining e quipme nt in lo w de ma nd – impa irme nt o f R736 millio n ra ise d F ina lise sa le o f Be nga asse ts – disc o ntinue d o pe ra tio ns lo ss o f R572 millio n, a fte r ta xa tio n Clo sure o f non-c or

e b usine ss units – disc o ntinue d o pe ra tio ns lo ss o f R112 millio n Par tne r ing o f ne w re ve nue -g e ne ra ting a sse ts to re a c h de -g e a ring ta rg e ts

Re duc e d liquidity in So uth Afric a n c a pita l ma rke ts

Cr e dit r ating limits a c c e ss to c a pita l ma rke t funding

De b t r

e financ ing pro c e ss

No divide nd de c la re d a lig ne d with c a sh pre se rva tio n po lic y

KEY C HAL L ENG ES

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PRO G RESS

Re duc e mining a sse ts (a ll in use )



Ca sh pre se rva tio n



F ML Afric a n E RP ro llo ut



Ra tio na lisa tio n o f va rio us b usine sse s



Pa rtne ring o f le a sing a sse ts Co nc lude Be ng a (Mo za mb iq ue ) sa le I mpro ve de b t ma turity pro file F ML SA E RP ro llo ut E uro pe a n a c q uisitio ns/ pa rtne ring OE M pa rtne ring

F Y2016 F Y2017/ 18

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SAL IENT FEAT URES – C O NT INUING O PERAT IO NS

T he re sults e xc lude disc o ntinue d o pe ra tio ns

CASH GE NE RAT E D BY OPE RAT I ONS BE F ORE CHANGE S I N WORK I NG CAPI T AL I NCRE ASE D

0.9%

R1 496 millio n to R1 510 millio n OPE RAT I NG PROF I T I NCRE ASE D

7.1%

R407 millio n to R436 millio n I NT E RE ST

BE

ARI NG BORROWI NGS I NCRE ASE D

0.3%

R7 519 millio n to R7 545 millio n HE ADL I NE E ARNI NGS PE R SHARE I NCRE ASE D

18.1%

18.8 c e nts to 22.2 c e nts

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DIVISIO NAL PERFO RMANC E

DIST RIBUT ION, L E ASING RE NT AL VAL UE

ADDE

D SE RVICE S F OR:

INDUST R IAL E QUIPME NT

F

rklifts

Po rt e q uipme nt L ifting , lo a ding a nd wa ste Othe r industria l e q uipme nt

VAL UE

ADDE

D CORPORAT E L E ASING AND L OGIST ICS F OR:

F L E E T MANAGE ME NT AND L OGIST ICS

Pa sse ng e r ve hic le s L ig ht, me dium a nd he a vy c o mme rc ia l ve hic le s Ve hic le re ma rke ting L

g istic s

OPE NCAST MINING SE R VICE S:

CONT RACT MINING AND PL ANT RE NT AL

Drilling Bla sting L

a d a nd ha ul

Sho rt-te rm pla nt re nta l L

ng -te rm pla nt le a sing

RE VE NUE

R 1 448m

OPE RAT I NG PROF I T

R 154m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 2 714m

RE VE NUE CONT RI BUT I ON

35%

RE VE NUE

R 1 054m

OPE RAT I NG PROF I T

R 202m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 3 054m

RE VE NUE CONT RI BUT I ON

25%

RE VE NUE

R 1 651m

OPE RAT I NG PROF I T

R 76m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 2 271m

RE VE NUE CONT RI BUT I ON

40%

+4.3%

5.5%

+8.0%

6.9%

+5.2%

4.5%

+4.8% +46.2%

47.0%

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

10

DIVISIO NAL REVIEW

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DIVISIO NAL C O NT RIBUT IO NS

17% 20% 23% 25% 34% 32% 33% 34% 33% 38% 51% 47% 43% 42% 28% 0% 20% 40% 60% 2012 2013 2014 2015 H1'16 I ndustria l E q uipme nt F le e t Ma na g e me nt a nd L

g isic s

Co ntra c t Mining a nd Pla nt Re nta l

RE VE NUE

GE

NE RAT ING ASSE T S

24% 25% 34% 31% 36% 40% 30% 40% 39% 47% 36% 45% 26% 29% 18% 0% 20% 40% 60% 2012 2013 2014 2015 H1'16

OPE RAT ING PROF IT

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SOUT H AF RICA

SA fo rklift ma rke t ne g a tive ly e ffe c te d b y e c o no my Re fo c usse d; inc re a se d sa le s c o ve ra g e I nc re a se d ma rke t sha re 600SA pe rfo rme d b e lo w e xpe c ta tio ns due to lo w de ma nd Clo se d 600SA ma nufa c turing a nd Co nstruc tio n E q uipme nt b usine sse s He a vylift b usine ss re -po sitio ne d

INDUST RIAL EQ UIPMENT

INDUST R IAL E QUIPME NT

55% 19% 17% 9%

F

rklifts - SA

F

rklifts - UK

He a vy e q uipme nt (truc ks, c ra ne s, po rt e q uipme nt) L ifting , lo a ding a nd wa ste

2 000 4 000 6 000

Jun 12 De c 12 Jun 13 De c 13 Jun 14 De c 14 Jun 15 De c 15 T

ta l ma rke t

E I E to ta l

Sour c e: Wo rld Industria l T ruc k Sta tistic s (WIT S)

SA F ORKL IF T MARKE T (half ye ar ly units)

RE VE NUE

R 1 448m

OPE RAT I NG PROF I T

R 154m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 2 714m

RE VE NUE CONT RI BUT I ON

35%

+4.3%

5.5%

+8.0%

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UK/ E UR OPE

F

rklift b usine ss pe rfo rme d a b o ve e xpe c ta tio ns

Ma rke t g ro wth o f 17% Ma inta ine d ma rke t sha re Mirro r SA stra te g y - inc re a sing sa le s c o ve ra g e I de ntifying a c q uisitio n a nd pa rtne rship o ppo rtunitie s

INDUST RIAL EQ UIPMENT

INDUST R IAL E QUIPME NT

55% 19% 17% 9%

F

rklifts - SA

F

rklifts - UK

He a vy e q uipme nt (truc ks, c ra ne s, po rt e q uipme nt) L ifting , lo a ding a nd wa ste 200 400 600 800 6 12 18 Jun 12 De c 12 Jun 13 De c 13 Jun 14 De c 14 Jun 15 De c 15 E I E UK ma rke t T

ta l UK

ma rke t (000) T

ta l ma rke t

E I E to ta l

Sour c e: British Industria l T ruc k Asso c ia tio n (BIT A)

UK F ORKL IF T MARKE T (half ye ar ly units)

RE VE NUE

R 1 448m

OPE RAT I NG PROF I T

R 154m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 2 714m

RE VE NUE CONT RI BUT I ON

35%

+4.3%

5.5%

+8.0%

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F

rklift b usine sse s re ma in c o re fo c us

So uth Afric a : Ma inta in ma rke t sha re , a fte rma rke t o ppo rtunity UK : inc re a se ma rke t sha re , a fte rma rke t o ppo rtunity Se le c tive a c q uisitio n/ pa rtne ring o ppo rtunitie s in the UK a nd E uro pe Build pa rtne rships in Afric a Mo re ra tio na lisa tio n a nd e ffic ie nc y o ppo rtunitie s Ove ra ll he a lthy o rde r b o o k fo r the lo ng -te rm le a sing b o o k a nd c a sh sa le s

INDUST RIAL EQ UIPMENT O UT L O O K

* SA/ UK

rde r b o o k split

2 226 2 127 2 381 2 419 3 200 2 872 2 444 2 192 1387 1 052 972 977 500 1 000 1 500 2 000 2 500 3 000 3 500 *De c 2015 *Jun 2015 *De c 2014 *Jun 2014 De c 2013 Jun 2013 De c 2012 Jun 2012

ORDE R BOOK (R’m)

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59% 25% 5% 11%

Pa sse ng e r ve hic le s Co mme rc ia l ve hic le s L

g istic s

Re st o f Afric a Cha ng e in b usine ss mo de l to inte g ra te d se rvic e s c o ntinue s to impro ve q ua lity o f e a rning s I mpro ve d PBT ma rg in fro m 7.6% to 10.2% E xite d sub -o ptima l c o ntra c ts Ge a ring re duc e d fro m 3:1 to 2:1 re sulting in ne t de b t re duc tio n o f R199m Ma inta ine d ne g a tive wo rking c a pita l (-6.5%) Ma rg ina l de c re a se in re ve nue -g e ne ra ting a sse ts in line with a struc ture d re pla c e me nt pro g ra m Re duc e d sta ff c o sts to re ve nue ra tio Clo sure o f Co mmo ditie s a nd Nig e ria n b usine sse s

FL EET MANAG EMENT AND L O G IST IC S

F L E E T MANAGE ME NT AND L OGIST ICS

RE VE NUE

R 1 054m

OPE RAT I NG PROF I T

R 202m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 3 054m

RE VE NUE CONT RI BUT I ON

25%

6.9%

+5.2%

4.5%

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Que st syste m ro ll o ut into SA H2’ 16 fo llo wing Afric a n imple me nta tio n F urthe r re duc tio n o f o ve rhe a ds thro ug h Que st visib ility a nd c o st e ffic ie nc ie s F

c us o n c o re a nnuity inc o me stra te g y; ma inta in q ua lity c lie nt b a se

Alte rna tive funding struc ture s to suppo rt le a sing g ro wth Co ntinue d dive rsific a tio n into se rvic e s Gro wth o ppo rtunitie s e xist

FL EET MANAG EMENT AND L O G IST IC S O UT L O O K

4 454 5 130 6 043 6 160 5 842 6 228 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500 6 000 6 500 7 000 De c -15 Jun 2015 De c 2014 Jun 2014 De c 2013 Jun 2013

* ORDE R BOOK (R’m) *E xit o f Co mmo ditie s a nd unde r pe rfo rming c o ntra c ts. Clo ve r fixe d te rm c o ntra c t.

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Mo za mb iq ue o pe ra tio ns a t Be ng a c o nc lude d in De c e mb e r 2015 Asse ts o f R365 millio n e a rma rke d fo r sa le s in SA, ne t o f impa irme nt o f R736 millio n (R86 millio n e xc e ss a sse ts c o sts) Asse t sa le s unde rwa y Nse le c o ntra c t c o mme nc e me nt da te e xte nde d to H2’ 16 Sa fe ty re c o rd: to ta l pro je c t L T I F a ve ra g e 421 da ys in H1’ 16 I mpro ve d o pe ra tio na l e ffic ie nc ie s impa c ting o pe ra ting pro fit Re duc e d re ve nue -g e ne ra ting a sse ts b y 44% sinc e 2012; whilst ke e ping la rg e st re ve nue c o ntrib utio n: “Do ing mo re with le ss”

C O NT RAC T MINING AND PL ANT RENT AL

CONT RACT MINING AND PL ANT RE NT AL

57% 8% 31% 4%

SA c o ntra c t mining SA pla nt re nta l Re st o f Afric a c o ntra c t mining Re st o f Afric a pla nt re nta l 41% 39% 36% 43% 39% 38% 16% 22% 26% H1'16 H2'15 H2'14 PGMs E ne rg y Othe r a nd pla nt re nta l RE VE NUE

R 1 651m

OPE RAT I NG PROF I T

R 76m

RE VE NUE

GE

NE RAT I NG ASSE T S

R 2 271m

RE VE NUE CONT RI BUT I ON

40%

+4.8% +46.2%

47.0%

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MINING C O NT RAC T S

* T he c o ntra c t is unde r ne g o tia tio n, o pe ra tio ns a re c o ntinuing

CL IE NT COMMODIT Y L OCAT ION MONT HL Y VOL UME S E ND DAT E Pla tmin – Pila ne sb e rg Pla tinum Mine Pla tinum No rtha m, No rth We st 1 600 000m3 03/ 21 Ang lo pla t – Mo g a la kwe na Mine Pla tinum Mo ko pa ne , L impo po 400 000m3 12/ 15* T ha risa Mine ra ls Chro me Buffe lspo o rt, No rth We st 1 250 000m3 11/ 20 E xxa ro – Do rsfo nte in E a st Co a l K rie l, Mpuma la ng a 1 300 000m 3 03/ 16* Nse le Co a l Co a l De lma s, Mpuma la ng a 1 000 000m 3 04/ 21 Se pha ku - Ag a na ng Mine L ime sto ne L ic hte nb e rg , No rth We st 125 000m 3 03/ 17 Bo te ti - K a ro we Dia mo nd Mine Dia mo nds K a ro we , Bo tswa na 500 000m 3 12/ 20

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Glo b a l c o mmo dity pre ssure s re duc e mine rs c a pe x; c o ntra c t mining o ppo rtunity I mme dia te o ppo rtunitie s with e xisting c lie nts (sc o pe a nd te nure ) a nd o utside usua l te nde r

ppo rtunitie s

Oppo rtunitie s to furthe r impro ve e ffic ie nc ie s, utilisa tio n, ma inte na nc e spe nd a nd c o ntra c ting mo de l o n e xisting pro je c ts Cre a tive pa rtne ring a nd so lutio ns c re a ting suc c e ss I mpa ire d a sse ts to fa ir va lue b a se d o n c urre nt ma rke t c o nditio ns with a vie w to se ll Additio na l vo lume s se c ure d a nd ne w c o ntra c ts se c ure d o n the b a c k o f pe rfo rma nc e a nd c o ntra c ting mo de ls Using e xisting b a la nc e she e t fo r g ro wth

C O NT RAC T MINING AND PL ANT RENT AL O UT L O O K

15 432 11 508 8 508 8 933 6 170 9 983 10 636 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 De c 2015 Jun 2015 De c 2014 Jun 2014 De c 2013 Jun 2013 De c 2012

ORDE R BOOK (R’m)

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20

FINANC IAL REVIEW

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F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

G RO UP INC O ME ST AT EMENT

R’ MIL L ION H1’16 H1’15 % c h R e ve nue 4 113

4 004 2.7 Ne t o pe ra ting e xpe nse s (2 753) (2 703) 1.8

Pr

fit fr
m c ontinuing ope r

ations 1 360 1 301 4.5

De pre c ia tio n, a mo rtisa tio n a nd re c o upme nts (924) (894) 3.4

Ope r ating pr

fit

436 407 7.1

Ne t fo re ig n e xc ha ng e (lo sse s) g a ins (16) 5 I mpa irme nt o f le a sing a sse ts (736)

(L
ss) pr
fit be for

e ne t financ e c osts (316) 412

Ne t fina nc e c o sts (300) (304) (1.3)

(L

ss) pr
fit be for

e taxation fr

m c ontinuing ope r

ations (616) 108

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F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

G RO UP Q UAL IT Y O F EARNING S

R’ MIL L ION H1’16 H1’15 OPE RAT ING PROF IT F ROM CONT INUING OPE RAT IONS 436* 407**

I ndustria l E q uipme nt 154 163 F le e t Ma na g e me nt a nd L

g istic s

202 192 Co ntra c t Mining a nd Pla nt Re nta l 76 52 Co rpo ra te o ffic e 4

INCL

UDE D IN OPE RAT ING PROF IT 120* 105**

E xc e ss mining a sse ts ho lding c o sts 86 68 Re tre nc hme nt c o sts 2 2 Se c tio n 54 sto ppa g e s a t mining o pe ra tio n a nd c lo sure c o sts 32 35

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F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

G RO UP INC O ME ST AT EMENT c o ntinue d

T he c o ntinuing E PS lo ss is prima rily a s a re sult o f impa irme nts o n mining a sse ts in Co ntra c t Mining a nd Pla nt Re nta l Disc o ntinue d o pe ra tio ns inc lude :

› Clo sure o f Co mmo ditie s a nd Co nstruc tio n E

q uipme nt b usine ss units

› Co nc lusio n o f the Be ng a o pe ra tio ns

R’ MIL L ION H1’16 H1’15 (L

ss) pr
fit be for

e taxation fr

m c ontinuing ope r

ations (616) 108

I nc o me ta x inc o me (e xpe nse ) 178 (28)

(L

ss) pr
fit for

the pe r iod fr

m c ontinuing ope r

ations (438) 80 Disc ontinue d ope r ations

(L

ss) pro fit fo r the pe rio d fro m disc o ntinue d o pe ra tio ns

(684) 72

(L

ss) pr
fit for

the pe r iod (1 122) 152

Be nga: R572 million Constr uc tion: R69 million Commoditie s: R43 million

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F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

WEIG HT ED AVERAG E SHARES IN ISSUE

MIL L IONS H1’16 H1’15

We ig hte d a ve ra g e sha re s in issue , ne t o f tre a sury sha re s 391.1 396.9 We ig hte d tre a sury sha re s so ld fo r sta ff sc he me 0.1 0.2

We ighte d ave r age shar e s in issue 391.2 397.1 Continuing ope r ations

Ba sic a nd dilute d HE PS (c e nts) 22.2 18.8 Ba sic a nd dilute d E PS (c e nts) (112.5) 18.9

Disc ontinue d ope r ations

Ba sic a nd dilute d HE PS (c e nts) (26.1) 18.1 Ba sic a nd dilute d E PS (c e nts) (174.9) 18.1

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VAL UE C HAIN REVENUE ST AT EMENT

Ab o ve is b a se d o n c o ntinuing o pe ra tio ns, e xc luding Co rpo ra te Offic e e limina tio ns

H1’16 R’ MIL L ION Distr ibute L e ase / r e nt Value -add Se ll T

tal

I ndustria l E q uipme nt 436 516 407 89 1 448 F le e t Ma na g e me nt a nd L

g istic s
560

304 190 1 054 Co ntra c t Mining a nd Pla nt Re nta l

238

1 400 13 1 651

T

tal c ontinuing ope r

ations 436 1 314 2 105 298 4 153 H1’15 R’ MIL L ION Distr ibute L e ase / r e nt Value -add Se ll T

tal

I ndustria l E q uipme nt 552 395 362 80 1 389 F le e t Ma na g e me nt a nd L

g istic s
675

297 209 1 181 Co ntra c t Mining a nd Pla nt Re nta l

252

1 283 40 1 575

T

tal c ontinuing ope r

ations 552 1 268 1 939 338 4 097

F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

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H1’16

10% 32% 51% 7% Distrib ute Re nt/ le a se Va lue -a dd Se ll 14% 31% 47% 8%

VAL UE C HAIN REVENUE ST AT EMENT

H1’15

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AS AT 31 DE CE MBE R 2015

BAL ANC E SHEET – ASSET S

R’ MIL L ION H1’16 H2’15 % c h

Re ve nue -g e ne ra ting a sse ts 8 030 9 982 (19.6) I nve nto rie s 1 108 1 062 4.3 T ra de a nd o the r re c e iva b le s a nd de riva tive s 1 887 1 770 6.6 Ca sh a nd c a sh e q uiva le nts 433 203 113.3 Asse ts he ld fo r sa le 1 181

Othe r a sse ts

815 849 (4.0)

T

tal asse ts

13 454 13 866 (3.0)

78% 11% 11% So uth Afric a Re st o f Afric a UK 73% 18% 9%

OPE RAT ING ASSE T S H2’15 H1’16

Be nga: R782 million Mining asse ts: R365 million Commoditie s: R34 million

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AS AT 31 DE CE MBE R 2015

BAL ANC E SHEET – EQ UIT Y AND L IABIL IT IES

R’ MIL L ION H1’16 H2’15 % c h

T

ta l e q uity

2 885 3 770 (23.5) I nte re st-b e a ring b o rro wing s 7 545 7 519 0.3 T ra de a nd o the r pa ya b le s a nd de riva tive s 1 949 1 782 9.4 L ia b ilitie s dire c tly a sso c ia te d with a sse ts he ld fo r sa le 425

Othe r lia b ilitie s

650 795 (18.2)

T

tal e quity and liabilitie s

13 454 13 866 (3.0)

3 000 6 000 9 000 12 000 2009 2010 2011 2012 2013 2014 2015 H1'16 Re ve nue -g e ne ra ting a sse ts I nte re st-b e a ring b o rro wing s

Be nga de bt: R259 million Be nga tax: R147 million Commoditie s: R19 million

SLIDE 29

29

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

C ASH FL O W ST AT EMENT

* I nc lude s R196 millio n (2014: R292 millio n) o f le a sing a sse ts tra nsfe rre d to inve nto ry a s a no n-c a sh flo w ite m

R’ MIL L ION H1’16 H1’15 % c h

Ca sh g e ne ra te d fro m o pe ra tio ns b e fo re wo rking c a pita l mo ve me nts 1 510 1 496 0.9 Wo rking c a pita l mo ve me nts* 263 409 (35.7)

Cash ge ne r ate d fr

m ope r

ations 1 773 1 905 (6.9)

Ca sh flo ws fro m inte re st a nd ta xa tio n (340) (348) 2.3

Ne t c ash flows fr

m ope r

ating ac tivitie s 1 433 1 557 (8.0)

Ne t c a sh flo ws fro m inve sting a c tivitie s (1 121) (1 356) 17.3 Ne t c a sh flo ws fro m fina nc ing a c tivitie s (114) (169) 32.5

Ne t inc r e ase in c ash and c ash e quivale nts be for e e ffe c t

f e xc hange r

ate 198 32

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30

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

203 1 314 33 263 91 24 284 958 7 433 At b e g inning o f the ye a r Ca sh g e ne ra te d fro m o pe ra tio ns Mo ve me nt in fina nc e le a se re c e iva b le s I nc re a se in wo rking c a pita l* De c re a se in inte re st-b e a ring b o rro wing s T a xa tio n pa id Ne t fina nc e c o sts a nd fx mo ve me nts Ne t c a pita l e xpe nditure * T ra nsa c tio ns with sha re ho lde rs At the e nd o f the ye a r

F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

MO VEMENT IN C ASH AND C ASH EQ UIVAL ENT S

* Cha ng e s in wo rking c a pita l a nd ne t c a pita l e xpe nditure ha ve b e e n a djuste d fo r the le a sing a sse ts tha t we re tra nsfe rre d to inve nto ry a s a no n-c a sh flo w ite m

SLIDE 31

31

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

C APIT AL EXPENDIT URE

R’ MIL L ION H1’16 H1’15 E XPANSION 452 676

I ndustria l E q uipme nt 317 327 F le e t Ma na g e me nt a nd L

g istic s

135 349 Co ntra c t Mining a nd Pla nt Re nta l

RE

PL ACE ME NT (NE T OF PROCE E DS) 702 674

I ndustria l E q uipme nt 127 109 F le e t Ma na g e me nt a nd L

g istic s

298 331 Co ntra c t Mining a nd Pla nt Re nta l 277 234

T RANSF E R T O INVE NT ORIE S (196) (292) Ne t c apital e xpe nditur e 958 1 058

SLIDE 32

32

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

FUNDING PO SIT IO N – 31 DEC EMBER 2015

* CT A – b a nks’ c o mmo n te rms a g re e me nt, whic h inc lude s the Co mmo n Mo ne ta ry Are a a nd Bo tswa na

F UNDING F ACIL IT IE S (R’ MIL L ION) F ACIL IT Y SIZE UT IL ISE D HE ADROOM

RSA b a nk de b t Ge ne ra l b a nking fa c ility 900 710 190 L iq uidity fa c ility 1 000 820 180 T e rm fa c ility 2 628 2 628 Bo tswa na b a nk de b t Ge ne ra l b a nking fa c ility 28 28 T e rm fa c ility 263 263 E CE b a c ke d de b t US E x-I m a nd Co fa c e 136 136

T

tal

4 955 4 557 398 RSA non-bank de bt Bond Matur ity date 1 853

CP 22 Ma r 2016 100 E QS09 29 No v 2016 100 E QS05 25 Apr 2017 900 E QS06 09 Apr 2018 340 E QS07 09 Apr 2018 106 E QS08A 04 Oc t 2018 Amo rtising 279

Botswana non-bank de bt

Priva te pla c e me nt 05 Se p 2018 28

T

tal CMA funding

6 410 398

Re st o f wo rld 1 731 1 394 337

T

tal funding

7 804 735

Ca sh a nd c a sh e q uiva le nt (433) 433

Ne t funding 7 371 1 168

SLIDE 33

33

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

CMA (SA & BOT SWANA) BI

ANNUAL

DE BT MAT URI T Y PROF I L E

C T A DEBT MAT URIT Y PRO FIL E – 31 DEC EMBER 2015

500 1 000 1 500 2 000 2 500 3 000 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 E CA Ove rnig ht b o rro wing s Co mme rc ia l pa pe r Bo nds L

ng te rm fa c ilitie s

L iq uidity fa c ility Bo tswa na

SLIDE 34

34

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

DEBT DIVERSIFIC AT IO N

82% 4% 14% 83% 6% 11% 80% 10% 10%

CMA (So uth Afric a a nd Bo tswa na ) Re st o f Afric a Unite d K ing do m

69% 29% 2% 62% 36% 2% 59% 39% 2%

Ba nk de b t Ca pita l ma rke t E CAs

H1’ 16 H2’ 15 H1’ 15 H1’ 16 H2’ 15 H1’ 15 CT A DE BT DIVE RSIF ICAT ION GE OGRAPHICAL DE BT DIVE RSIF ICAT ION

SLIDE 35

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

35

O UT L O O K

SLIDE 36

36

E QST RA UNAUDI

T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

Optima l c a pita l struc ture will suppo rt e a rning s g ro wth Appro pria te pa rtne ring o f le a sing a sse ts Pursue g e o g ra phic a l o ppo rtunitie s in sta b le ma rke ts F

c us o n q ua lity o f e a rning s

CF O a ppo intme nt to b e a nno unc e d

Industr ial E quipme nt:

› Co ntinue to fo c us o n c o re b usine ss › So lid pe rfo rma nc e in the fo rklift b usine sse s to c o ntinue in RSA a nd UK › A he a lthy o rde r b o o k in pla c e to suppo rt a nnuity re ve nue g ro wth

F le e t Manage me nt and L

gistic s:

› E

a rning s re ma in ro b ust

› Drive VAP’ s with me a sure d e xpa nsio n

Contr ac t Mining and Plant Re ntal:

› Dispo sa l o f impa ire d mining a sse ts a nd se e k o ppo rtunitie s with e xisting a sse ts › L

imit e xpo sure o f c o ntra c t mining to 30% o f g ro up’ s re ve nue -g e ne ra ting a sse ts

› F

c us o n e ffic ie nc ie s a nd c o ntra c t ma na g e me nt

G RO UP O UT L O O K

SLIDE 37

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T E D RE SUL T S F OR T HE SI X MONT HS E NDE D 31 DE CE MBE R 2015

37

Q UEST IO NS

IR C O NT A C T HENK LINDEQ UE + 27 11 966 2523 + 27 82 876 2476 hlind e q ue @ e q stra .c o .za