Metair Investments Limited · JSE:MTA
Metair Investments — FY2013 Earnings Presentation
89 slides from Metair Investments's earnings presentation, Mar 25, 2014
Slide 1: 2013 Year-End Results, Strategic & Operational Update
2013 YEAR-END RESULTS, STRATEGIC & OPERATIONAL UPDATE 25TH MARCH 2014
Slide 2: Agenda
AGENDA • Metair Board Changes • Reflection • Vision & Strategy • Results Overview – Accounting changes – Trading characteristics for the period – Rombat • Financial Review • Mutlu Review • Operational Review • Start/Stop Battery Development • Prospects 2
Slide 3: Metair New Board Appointment
METAIR NEW BOARD APPOINTMENT BRAND PRETORIUS Mr Pretorius holds an MCom Business Economics from the University of the Free State and served as managing director of Toyota SA Marketing and then as chief executive officer of McCarthy Limited. He retired as an executive director of McCarthy and its con
Slide 4: Metair Management Changes
METAIR MANAGEMENT CHANGES BRIAN MICHAEL JACOBS Company: Metair Investments Limited Position: Finance Director Date of appointment: 1 December 2008 Age: 46 Nationality: South African Qualifications: B Comm B Acc CA (SA) Experience: Mr Jacobs is a chartered accountant and completed his articles with P
Slide 5: Strengthening of Metair SA Operations Management
STRENGTHENING OF METAIR SA OPERATIONS MANAGEMENT Appointment of Chief Operating Officer for SA Operations KEN LELLO Company: Metair Investments Limited Position: Chief Operating Officer – SA Operations Age: 46 Married: Mandy Dependents: 3 (Ryan 21, Cameron 18, Cuan 13) Contact No: 27 82 807 4710 Nat
Slide 6: Reflection
REFLECTION 6
Slide 7: Annual Integrated Report
ANNUAL INTEGRATED REPORT Metair’s annual integrated reports are always presented against the backdrop of a theme that aims to reflect the position of the company at that specific time. 7
Slide 8: Image
IMAGE 8
Slide 9: Image: Reflection
IMAGE: REFLECTION This year's cover image is of Africa, Europe, Middle East and Russia in the time zone of South Africa plus two hours and minus one hour represents Metair growing its international footprint and becoming the 3rd biggest battery player in the EMEA market supported by the Mutlu Acquis
Slide 10: 8-Year Annual Financial Report Themes
8-YEAR ANNUAL FINANCIAL REPORT THEMES • 2006 Growth, Gain, Enrichment • 2007 Transformation • 2008 Transparency • 2009 Crossroads – Back to Basics • 2010 Balance • 2011 Human Focus, Measurement and Adjustment • 2012 Reflection – Road Ahead • 2013 Growing our International Footprint 10
Slide 11: 2006 Growth
2006 Growth • New era for Metair and Toyota • Toyota targeting 220 000 vehicle production • Huge investments to support Toyota production volumes • Significant increase in indirect exports • Multinational company partnerships 11
Slide 12: 2007 Transformation
2007 Transformation • Transformation represented by an origami butterfly • New shareholders • More focus on aftermarket and non-auto • Multi-customer OE strategy 12
Slide 13: 2008 Transparency
2008 Transparency • 2008 world economic crisis required more transparency • Substantial decline in worldwide demand • OE local production declined from 527 079 to 354 158 vehicles • Metair predicts that Toyota SA will experience the biggest percentage decline in the world 13
Slide 14: 2009 Crossroads
2009 Crossroads • Back to basics • Restructured group to take into account economic reality • Consolidated loss-making businesses • Cash flow and working capital focus • Costs and efficiencies • Create new vision 14
Slide 15: 2010 Balance
2010 Balance • Group finds balance after executing dramatic deep-cutting, cost-saving interventions • Cost-competitiveness requirements and shareholder expectations • Realisation that continuous small adjustments will be required • New group vision 15
Slide 16: 2011 Human Focus, Measurement and Adjustment
2011 Human Focus, Measurement and Adjustment • Focus on implementing group vision • Obtain approval for new technologies in our green battery product range • Nurture our corporate capacity and ability to improve and adjust • Intently focus on cost- competitiveness • Secure OE replacement model busin
Slide 17: 2012 Reflection – Road Ahead
2012 Reflection – Road Ahead • Reflection on the past • Rombat Acquisition • Re-branded Metair • Embedded Vision • 3 X 50% = 100% Strategy • Marikana Effect 17
Slide 18: 2013 Growing our International Footprint
2013 Growing our International Footprint • Rombat integration • Start/Stop facility Rombat • Mutlu acquisition • 3rd battery player EMEA • Return on 3 X 50% strategy • Successful capital raising • First international Start/Stop enquiry 18
Slide 19: Market Segments in Which Metair Operates
MARKET SEGMENTS IN WHICH METAIR OPERATES • ORIGINAL EQUIPMENT (OE) – Parts sold used in the assembly of new vehicles (South Africa, Romania, Turkey, Slovakia & Russia) • AFTERMARKET – Annuity income generated from vehicles sold as they require replacement parts (Africa, Russia, Europe, Middle East a
Slide 20: Vision & Strategy
VISION & STRATEGY 20
Slide 21: Vision
VISION HEADING TO GO HERE “To generate value for all our stakeholders by managing and controlling businesses that through manufacturing and/or logistical excellence, deliver quality, cost-competitive products to our customers in a sustainable manner.” 21
Slide 22: Strategy
STRATEGY • Continue to target balance in the business • Nurture Original Equipment (OE) business and expand Original Equipment Manufacturer (OEM) customer base • Focus intently on cost • Secure and grow aftermarket product range • Grow Africa footprint • Focus on transfer of battery technologies to
Slide 23: 3 x 50% = 100% Strategy
3 X 50% = 100% STRATEGY • 50% of business in OE sector • 50% of business in Aftermarket, Non-auto and exports and • 50% of overall business in batteries 23
Slide 24: Performance Against Strategy
PERFORMANCE AGAINST STRATEGY 70% 57% 58% 60% 54% 50% 46% 45% 43% 40% Actual 30% Proforma 20% 10% 0% OE Aftermarket * Batteries * Relates to aftermarket & non-automotive 24
Slide 25: Results Overview
RESULTS OVERVIEW 25
Slide 26: Results Overview
RESULTS OVERVIEW • Mutlu transaction concluded 12 December 2013 (accounted from 6 December 2013) • Effect of strike action – 9 weeks (approx. PBIT R87 million) • HEPS reduced to 219 cents/share • Profit after tax down to R374 million from R475 million • Net cash improved with inclusion of Mutlu • Op
Slide 27: Results Overview: Accounting Changes
RESULTS OVERVIEW: ACCOUNTING CHANGES • IFRS 10 & 12 • International Financial Reporting Standards 10 and 12, (“new IFRS”) govern consolidated financial statements and disclosure of interests in other entities. • Metair has 4 such entities • Tenneco Automotive Holdings SA (Tenneco) 25,1% shareholding
Slide 28: Trading Characteristics for the Period
TRADING CHARACTERISTICS FOR THE PERIOD • Disruptive labour action (unfortunate) • Continued delivery on our strategy • Sustained local OEM (Original Equipment Manufacturer) demand • Entry of foreign competitors in aftermarket segment • Expanded exports aftermarket sales • Declining non-auto business
Slide 29: Trading Characteristics for the Period
TRADING CHARACTERISTICS FOR THE PERIOD • Rombat fully integrated into Metair • Start/Stop battery technology in the local OE (Original Equipment) market expanded to second customer • Start/Stop facility installed and commissioned in Romania • Manufacturing Excellence expanded to Marketing Excellence
Slide 30: Margin Contraction
MARGIN CONTRACTION • OE Sector • Strike action for 9-weeks • Lag in recovery of exchange rate fluctuations from customers • Delayed/postponed economic recoveries from customers • Non-automotive Market • Demand pressure in mining sector • Aftermarket • Increase in lead premiums and lead scrap pricing
Slide 31: Rombat Integration
ROMBAT INTEGRATION • According to plan • Start/Stop facility installed and commissioned • Opening of Start/Stop facility by Romanian Prime Minister – 28 September 2013 • First test batteries produced • Investment assistance support claim received 31
Slide 32: Rombat Acquisition Health Check
ROMBAT ACQUISITION HEALTH CHECK • Transfer of Associates Complete • Transfer of Technology In progress • Integration Complete • Change Management Complete • Start/Stop facility Complete • Secure subsidy for Start/Stop facility Complete • Expansion of aftermarket footprint Europe In progress • Availa
Slide 33: Rombat Turnover & Volumes
ROMBAT TURNOVER & VOLUMES ITEM 2013 2012 Turnover (Lei) ‘000 304 967 240 051 EBITDA (Lei) 35 488 26 930 VOLUMES OE - Local/Export 417 792 412 526 Aftermarket – Local 444 548 440 209 Aftermarket – Export 1 248 996 1 287 844 TOTAL 2 111 336 2 140 579 33
Slide 34: Financial Review
FINANCIAL REVIEW 34
Slide 35: Accounting Change
ACCOUNTING CHANGE • IFRS 10 • Hesto a 74,9% subsidiary will now be equity accounted instead of consolidated. • No effect on HEPS 35
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS Dec 2013 Dec 2012 ITEM R’000 R’000 Revenue 5 227 426 4 603 150 EBITDA (excluding transaction costs) 728 857 761 329 Operating Profit 445 614 569 809 Operating Income (excluding transaction costs) 523 672 569 809 Operating Income Margin 8,5% 12,4% Profit After Tax 373 899 474 576
Slide 37: Group Revenue / Operating Profit
GROUP REVENUE / OPERATING PROFIT (excluding transaction fees) REVENUE OPERATING PROFIT 7 000 1000 524 570 6 000 5 277 5 000 4 603 Million 100 4 000 3 000 10 2 000 1 000 0 1 2013 2012 2013 2012 37
Slide 38: Headline Earnings Per Share (HEPS)
HEADLINE EARNINGS PER SHARE (HEPS) HEADLINE EARNINGS HEPS 500 350 441 310 450 300 405 271 400 368 260 327 250 219 350 200 189 300 265 Million 250 150 cps 200 100 150 100 50 50 0 0 38
Slide 39: Balance Sheet
BALANCE SHEET 31 Dec 2013 31 Dec 2012 Restated ITEMS R'000 R'000 ASSETS Non-Current Assets 4 299 084 1 462 435 Property, plant and equipment 2 844 929 1 191 499 Intangible assets 1 243 531 84 494 Investment in associates 199 786 175 939 Deferred taxation 10 838 10 503 Current Assets 3 150 242 1 831
Slide 40: Balance Sheet
BALANCE SHEET 31 Dec 2013 31 Dec 2012 Restated ITEMS R'000 R'000 Total Equity 3 788 752 2 052 730 Non-Current Liabilities 1 636 983 272 893 Borrowings 1 021 976 183 804 Post employment benefits 107 685 28 499 Deferred taxation 378 954 60 590 Deferred grant income 125 313 Current Liabilities 2 005 56
Slide 41: Income Statement
INCOME STATEMENT GROUP 2013 2012 ITEM Restated R’000 R’000 Revenue 5 227 426 4 603 150 Cost of sales -4 177 984 -3 542 121 Gross Profit 1 049 442 1 061 029 Other operating income 98 087 67 342 Distribution costs -222 328 -174 954 Administration expenses -451 732 -368 936 Other operating expenses -27
Slide 42: Segmental Analysis: Local
SEGMENTAL ANALYSIS LOCAL REVENUE LOCAL PBIT 2013 2012 2013 2012 350 3 500 3 144 3 135 308 300 3 000 250 2 500 222 224 Million 203 200 2 000 1 440 150 1 500 1162 1 000 100 59 486 463 50 500 18 0 0 Original Aftermarket Non-auto Original Aftermarket Non-auto Equipment Equipment 42
Slide 43: Segmental Analysis: Export
SEGMENTAL ANALYSIS EXPORT REVENUE EXPORT PBIT 2013 2012 70 2013 2012 61 900 60 800 772 50 700 40 Million 600 40 500 472 30 400 300 20 200 10 10 105 95 100 2 3 45 35 0 0 Original Aftermarket Non-auto Original Equipment Aftermarket Non-auto Equipment -4 -10 43
Slide 44: Mutlu Purchase Price Allocation (ZAR)
MUTLU PURCHASE PRICE ALLOCATION (ZAR) Property, plant and equipment & intangible assets ITEMS (‘000) Pre-acquisition Fair Value Post Acquisition Land & Buildings 248 132 685 438 933 570 Plant & Machinery 395 586 266 739 662 325 Brands 3 761 425 471 429 232 Customer Relationships - 228 301 228 301 To
Slide 45: Mutlu Review
MUTLU REVIEW 45
Slide 46: Rombat Acquisition – A Dress Rehearsal
ROMBAT ACQUISTION – A DRESS REHEARSAL Role of the German OE Council Motivated to develop an alternative source of supply to JCI Recognised the excellence in FNB’s design, manufacturing and technology Concerned about FNB’s lack of global scale and its limited market relevance given its SA base
Slide 47: Rombat Acquisition Blueprint
ROMBAT ACQUISITION – Rombat Acquisition Blueprint Rombat Acquisition Blueprint Went some way towards improving the market relevance of Metair/FNB – proximity and scale Attractive high growth automotive manufacturing market Strongly positioned in local OE market- opportunity to work with Renaul
Slide 48: Advanced Start/Stop Battery Product
ROMBAT ACQUISITION – Advanced Start/Stop Battery Product Advanced Start/Stop Battery Product Innovative AGM technology Latest OE Technology for advanced Start & Stop vehicles At least 3 to 4 times more cycle life and can meet the demands of all Start & Stop vehicles and high-end luxury vehicle
Slide 49: Rombat Acquisition – Technology
ROMBAT ACQUISITION – Technology Technology Rombat had a state of the art lead smelter that was only yielding 42%: FNB sent their top metallurgist to Rombat. By bringing the Rombat smelter recipe in line with the FNB recipe they were able to increase the yield to 55% with the scope to improve f
Slide 50: Rombat Acquisition – Cultural Lessons
ROMBAT ACQUISITION – Cultural Lessons Cultural Lessons Valuable lessons learnt around managing language differences Needed to adapt to manage the ex-communist mind-set Interventions to build confidence in the team that Rombat had the capacity to produce batteries that could meet and exceed the
Slide 51: Rombat Acquisition – Management Intervention
ROMBAT ACQUISITION – Management Intervention Re-engineered the business strategy by drawing on the experience of FNB Sent top financial manager to implement Metair’s financial disciplines Drew on SA experience in managing exchange rate exposure to de-risk the business and improve financial per
Slide 52: Rombat Acquisition – Margin Upliftment
ROMBAT ACQUISITION – Margin Upliftment Margin Upliftment Implemented a pre-designed strategy to achieve a 2% margin uplift: Smelter yield improvement to 56% Reduced input costs through lead savings and joint procurement Reset aftermarket margins 52
Slide 53: Design Criteria for Acquisition
DESIGN CRITERIA FOR ACQUISITION The lessons from Rombat have enabled Metair to design a focused and disciplined approach to its next acquisition Decision to identify an acquisition target Macro Industry Technological Target specific Considerations Considerations Considerations Considerations Part
Slide 54: Introduction to Mutlu
INTRODUCTION TO MUTLU Established in 1945, Mutlu is a family controlled business Mutlu’s Main Production Facility in Tuzla, Istanbul and the leader in the Turkish battery market 41% share of aftermarket 57% share of OE market The principle operating company Mutlu Aku has been listed Products
Slide 55: Mutlu Deal Industrial Logic: Scarce Strategic Asset
MUTLU DEAL HAS SOUND INDUSTRIAL LOGIC, ENHANCING METAIR’S EQUITY STORY 1 Scarce strategic asset with strong market position High quality and scarce battery asset, which is currently under utilised (c.63% utilisation in 2012) Market leader in Turkey with long standing history – 41% share of the b
Slide 56: Mutlu Deal Industrial Logic: Key Player in EMEA
MUTLU DEAL HAS SOUND INDUSTRIAL LOGIC, ENHANCING METAIR’S EQUITY STORY 2 Becoming a key player in the EMEA battery market Transformative transaction ■ A step towards positioning the business as a key player in the EMEA ■ Approaching the objective of 50:50:50 split between OEM, AFM and battery sale
Slide 57: Mutlu Deal Industrial Logic: Geographic Diversification
MUTLU DEAL HAS SOUND INDUSTRIAL LOGIC, ENHANCING METAIR’S EQUITY STORY 3 Geographic diversification and access to growth markets Top markets South Africa and Turkey among the most sizable and fastest growing in EMEA Access to Russia, CEE and MENA export markets, complementing Metair’s existing m
Slide 58: Mutlu Deal Industrial Logic: Strengthened OEM Access
MUTLU DEAL HAS SOUND INDUSTRIAL LOGIC, ENHANCING METAIR’S EQUITY STORY 4 Strengthened OEM access The combined entity would have the lowest cost manufacturing footprint of any major battery company in the world Mutlu has strong OEM relationships that complement Metair’s OEM base Mutlu supplies
Slide 59: Mutlu Deal Industrial Logic: Start-Stop Potential
MUTLU DEAL HAS SOUND INDUSTRIAL LOGIC, ENHANCING METAIR’S EQUITY STORY 5 Start-stop technology potential Metair objective to start producing start-stop batteries internationally in 2016 enhanced through Rombat and Mutlu acquisitions Increases propensity of additional OEMs to approve the technolo
Slide 60: Mutlu Deal Industrial Logic: Potential to Transform Metair
MUTLU DEAL HAS SOUND INDUSTRIAL LOGIC, ENHANCING METAIR’S EQUITY STORY 6 Potential to transform Metair Sharing of technologies and integrated business models ■ Similarity to FNB business model in terms of range of technologies and integrated business model Capacity optimization 60
Slide 61: Mutlu Volumes
MUTLU VOLUMES UNITS 2013 2012 Original Equipment - Local 710 469 775 332 Aftermarket - Local 1 350 898 1 439 037 - Export 1 371 493 1 365 798 Non-Auto - Local 76 783 88 269 - Export 11 317 7 656 Total Volume 3 520 960 3 669 092 Total local volume 2 138 150 2 302 638 Total exports 1 382 810 1 366 454
Slide 62: Mutlu Income Statement
MUTLU INCOME STATEMENT 2013 2012 ITEMS R'000 R'000 Turnover 2 237 2 190 Gross Profit 574 523 Marketing & Sales Distribution -202 -199 Administrative Expenses -139 -122 Research & Development Expenses -4 -4 Other income 36 57 Other expenses -17 -13 Operating profit 248 242 Other non operating income
Slide 63: Mutlu Financial Instrument Losses
MUTLU FINANCIAL INSTRUMENT LOSSES ZAR (millions) 1 Jan '13 - 31 Dec '13 Foreign exchange losses (67,6) Net USD debt @ BoP (stated in ZAR) 399,3 Net USD debt @ EoP (stated in ZAR) 109,1 TL:USD rate @ BoP 1,92 TL:USD rate @ EoP 2,13 63
Slide 64: Mutlu Earnings vs Metair Consolidated Earnings
MUTLU EARNINGS VS METAIR CONSOLIDATED EARNINGS ZAR earnings reconciliation 6 Dec - 31 Dec 2013 Mutlu Consol Metair PPA ZAR in millions Group adj. reported Net profit after tax 103,6 (23,3) (51,0) 29,3 Metair Aku (SPV) stand alone results (mainly FX) (23,3) Profit on sale of land (net of tax) (47,0)
Slide 65: Mutlu Transaction Cost Summary
MUTLU TRANSACTION COST SUMMARY Mutlu Capitalised Capitalised Reported ZAR in millions Group Equity Investment in I/S Total transaction cost 130,4 (45,0) (7,4) 78,0 Equity raise and commitment fee 45,0 Consultants (Tabacks, PwC, KPMG, TAD, INCE etc.) 25,3 Hedging option premiums 24,1 ABSA advisory fe
Slide 66: Hedging Impact for Payments
HEDGING IMPACT FOR PAYMENTS Hedging impact for payments (USD227.3m) up to 11 Jan '14 2 450 2 400 2 382 2 364 2 348 2 350 ZAR in m illions 2 300 2 283 2 250 2 200 2 150 2 100 2 050 2 000 Saving in ZAR 99,0 Capitalised 99,0 66
Slide 67: Operational Review
OPERATIONAL REVIEW 67
Slide 68: Working Capital (Excluding Mutlu)
WORKING CAPITAL (Excluding Mutlu) R’million ITEM 2013 2012 Inventory 852 755 Trade & receivables 810 668 Trade & payables (847) (602) Total 815 821 DAYS 2013 2012 Inventory 63 60 Trade & receivables 60 53 Trade & payables (63) (48) Total 60 65 All days calculations based on turnover 68
Slide 69: Vehicle Production per OEM in South Africa
VEHICLE PRODUCTION PER OEM IN SOUTH AFRICA OEM 2009 2010 2011 2012 2013 BMW 46 602 49 243 52 908 44 229 66 087 MBSA 44 526 53 646 50 939 61 443 47 189 FMCSA 34 926 34 822 28 716 51 006 56 923 GM 26 412 27 234 32 530 38 199 40 019 NISSAN 32 700 40 184 43 743 54 657 46 443 VW SA 62 341 120 577 137 872
Slide 70: Rombat OEM Production in Romania & Export Market
ROMBAT OEM PRODUCTION IN ROMANIA & EXPORT MARKET COUNTRY OEM 2008 2009 2010 2011 2012 2013 Dacia– Romania 257 332 299 640 341 866 331 018 304 994 349 276 Renault Slovakia Peugeot 8 880 83 566 121 309 137 942 68 160 29 878 Renault Russia - - - - 38 868 37 930 Nissan Total 266 212 383 206 463 175 468
Slide 71: 2013 Capital Expenditure
2013 CAPITAL EXPENDITURE GROUP Sector Expansion Maintenance Total R’000 Efficiency OE 37,2 60,3 97,5 Aftermarket/Non-auto 9,6 11,6 21,2 Property 2,6 13,7 16,3 Total 49,4 85,6 135,0 ROMBAT Sector Expansion Maintenance Total R’000 Efficiency OE 8,9 18,2 27,1 Aftermarket/Non-auto 2,4 2,1 4,5 Property -
Slide 72: 2014 Capital Expenditure Commitments
2014 CAPITAL EXPENDITURE COMMITMENTS* GROUP - Approved Sector Expansion Maintenance Total R’000 Efficiency OE 90,6 180,2 270,8 Aftermarket/Non-auto 45,2 31,8 77,0 Property 4,0 4,7 8,7 Total 139,8 216,7 356,5 * Includes authorised and committed capex 72
Slide 73: 2014 Capital Expenditure Commitments
2014 CAPITAL EXPENDITURE COMMITMENTS* ROMBAT - Approved Sector Expansion Maintenance Total R’000 Efficiency OE 33 - 33 Aftermarket/Non-auto - - - Total 33 - 33 MUTLU - Approved Sector Expansion Maintenance Total R’000 Efficiency OE 14,7 - 14,7 Aftermarket/Non-auto 33,4 - 33,4 Total 49,1 - 49,1 * Inc
Slide 74: Start/Stop Battery Development
START/STOP BATTERY DEVELOPMENT 74
Slide 75: Start/Stop Battery Development and Commercialisation Program
START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM 1930 – 1981 Oldham GW flooded battery mining cap lamp 1981 Introduction of VRLA AGM battery mining cap lamp 1981 – 1984 Extensive field testing and warranty analysis 1984 Introduction design improvements on VRLA AGM battery mining cap lamp
Slide 76: Start/Stop Battery Development and Commercialisation Program
START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM 2008 Design and tested to German Automobile & Industry Association Specification (VDA) 2009 Improved Start/Stop VRLA battery design Additional BMW testing Requested to consider transferring Start/Stop technology to Europe 2010 Start/Stop V
Slide 77: Start/Stop Battery Development and Commercialisation Program
START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM 2011 Further develop of relationship with Rombat Conditional supply approval on Start/Stop batteries for German Supply Council 2012 Automechanica SA Innovative Gold Award to FNB for VRLA Battery Acquire Rombat Supply first Start/Stop VRLA
Slide 78: Start/Stop Battery Development & Commercialisation Program
START/STOP BATTERY DEVELOPMENT & COMMERCIALISATION PROGRAM 2013 Installed and commissioned a Start/Stop facility at Rombat Obtained approval for second OE customer in SA for supply of Start/Stop batteries from 2014 First international interest in supply of Start/Stop batteries from 2016 Conceptual d
Slide 79: Prospects
PROSPECTS 79
Slide 80: Prospect Statement: Macro Environment Labour
PROSPECT STATEMENT: MACRO ENVIRONMENT LABOUR • Still volatile • NUMSA political aspirations • SEIFSA annual negotiation • Election year • New mining sector strikes • Focus on employee wellness • Need new approach • Must stabilize 80
Slide 81: Prospect Statement – 5 Key Focus Elements
PROSPECT STATEMENT – 5 KEY FOCUS ELEMENTS 1. Integration of Mutlu 2. Sell spare capacity 3. Complete MTO process 4. Ensure SA operations runs well 5. Start/Stop battery technology transfer 81
Slide 82: Prospect Statement – Integration of Mutlu
PROSPECT STATEMENT – INTEGRATION OF MUTLU • Identify correct organisational structure and appoint suitable candidates • Mutlu participation in supplies to traditionally strong Metair and Rombat customers • Implement monthly management reporting structures and reports, reporting integrated into Metai
Slide 83: Prospect Statement – Sell Spare Capacity
PROSPECT STATEMENT – SELL SPARE CAPACITY • Secure OEM supply contract 600 k units • Secure more than 25% of dominant OEM business in Turkey • Get on approved suppliers list for EFB batteries 83
Slide 84: Prospect Statement – Complete MTO Process
PROSPECT STATEMENT – COMPLETE MTO PROCESS • Obtain 95% in Mutlu Aku • Start delisting process 84
Slide 85: Prospect Statement – Ensure SA Operations Runs Well
PROSPECT STATEMENT – ENSURE SA OPERATIONS RUNS WELL • Appoint new COO • Timeous resolution of OE annual price adjustments • Grow FNB market share • No quality or delivery issues • Meet budgets and achieve savings 85
Slide 86: Prospect Statement – Start/Stop Battery Technology Transfer
PROSPECT STATEMENT – START/STOP BATTERY TECHNOLOGY TRANSFER • Get approval for Mutlu and Rombat batteries for type L1, L2, L3 EFB and H6,H7,H8 VRLA AGM. • Pass VDA test specifications for the above at all 3 plants 86
Slide 87: Prospect Statement
PROSPECT STATEMENT • During 2014 we will be focusing intently on maximising the benefits of our international acquisitions, ensuring rapid and effective integration and entrenching our relevance in the new markets we have access to. • Metair’s performance in the year ahead is dependent upon, inter a
Slide 88: Q & A
METAIR INVESTMENTS LIMITED automotive | industrial | retail Q&A WWW.METAIR.CO.ZA 88
Slide 89: Disclaimer
DISCLAIMER The information supplied herewith is believed to be correct but the accuracy thereof at the time of going to print is not guaranteed. The company and its employees cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision of this data does