CAPITAL MARKETS DAY – 13 JUNE 2017
Our History 1984 2003 2011 Awarded Toyota Industrial Awarded International Excellence Terminated agreement with equipment distributorship Status by TICO Kalmar Industries as they came direct to market themselves and First forklift locally manufactured Moved into new larger premises signed distributor agreement with in Durban Konecranes 1992 SIE purchased 6 acre property in Revenue exceeds R1,5 billion 2004 Elandsfontein to accommodate Moved into new custom built JHB branch, factory and HQ Cape Town premises 2016 Revenue exceeds R3 billion 1993 Revenue exceeds R1 billion Awarded BT distributorship TICO Premier Club – Outstanding Effort Award 2006 1994 Awarded distributorship for Signed distributor agreement with Raymond warehousing equipment Kalmar Industries SALES AWARDS 2007 1995 2012 Rental Fleet reaches Acquired by Imperial Holdings 2014 10 000 units 2015 2000 2016 Acquired Impact Handling in UK 2008 Unbundled from Imperial and became part of Eqstra Holdings 2001 Moved into new larger premises in Port Elizabeth 2010 Awarded CatLift distributorship in Rental fleet reaches 5000 units UK 1
World Ranking 2015 (2017 see red #) 2
Our STRUCTURE EIE CEO Gary Neubert EIE EIE EIE CFO MARKETING HUMAN CAPITAL Lindsy Taylor Karen van Diggelen Ferial Leech IMPACT HANDLING 600SA GROUP FORKLIFT BUSINESS ACTING GENERAL MANAGER MANAGING DIRECTOR MANAGING DIRECTOR Shumani Tshifularo Terry Kendrew Rentia Grobler Toyota Forklift; BT; Raymond; Cat Lift Trucks Fassi; Cranab; Penz Cranes Flexi Warehousing Equipment VDL Hooklifts & Hoppecke/Hawker Batteries & Konecranes Skiploaders; Chargers Bucher & Beam Sweepers Hako Cleaning Equipment; Orakci/Usimeca Waste Hangcha JCB Teletruck; JCB Rough Terrain Compactors; Forklifts Oil & Steel Aerial Platforms Rocla Valla Carrydeck Cranes Konecranes Port Equipment; Link-Belt Mobile Cranes Terberg Terminal Tractors Carer 3
Our POSITIONING STATEMENT “EIE Group is the partner of choice ( Employer, Supplier, Investment ) in distribution, rental, value-added services and used in the Industrial and Materials Handling market; offering a total solution , providing best-in-class brands and delivering optimal life-time value for our customers.” 4
Business Model Value Add Distribute Service, Rental • Outright sales maintenance and Parts Refurbished units Used Sales sold in second hand Refurbishment of market OR Repurchasing of second hand second hand units utilized in short units term lease fleet 5
Value Chain: Revenue 26% 29% 6% 39% Distribution (New Equipment) Sell (Used Equipment) Rental Value add (services, maintenance, parts) 6
Staff Numbers Forklift Business – South Africa 977 600SA (including Heavy Lift) 91 Shared Services 56 Forklift Business – UK 297 1 421 SA OPERATIONS - Technicians 514 - Apprentices 39 UK OPERATIONS - Engineers 128 - Apprentices 11 7
Our KEY DIFFERENTIATORS Strong OEM partnerships – Toyota, BT, CatLift, Rocla, Konecranes, Terberg Independence enables offering of full suite of materials handling products Significant scale via market leading position in SSA Full product life cycle capability – Distribution, rental, value added services, used Extensive branch and dealer network, supported by experienced team 8
TOYOTA FORKLIFT Toyota Forklift founded in 1984 32 Years Flexi 2010 BT Warehousing Equipment Raymond 2006 1993 9
JCB/HAKO JCB Teletruck in Hako Industrial Cleaning Equipment 2007 2008 10
INDUSTRIAL POWER Traction and Reserve Power 2013 11
PORT HANDLING Large & medium container equipment Container Lift Truck - EC Reach Stacker RST – FC Terberg 12
600SA Lifting, Loading & Waste Management 2012 13
Market trends - SA SA FORKLIFT UNITS ORDERED 12 000 10 000 9 525 8 737 8 390 8 346 8 000 7 536 7 310 7 217 7 200 6 927 6 931 6 767 6 105 6 000 4 799 3 687 3 562 3 302 3 691 4 000 2 000 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: World Industrial Trucks Statistics (WITS) 14
African Market Coverage 15
Target Market Agricultural Logistics Manufacturing FMCG industry Container Retail Mining Automotive handling Waste Airports Municipalities Port operations management Contract Government cleaning 16
Key Accounts - SA 17
Broad Customer Base - SA Leasing Book Composition 11% 2% % of Leasing Book Made Up By Top 10 Rental Customers % of Leasing Book Made Up By Largest Customer Rest 87% 18
Competitors FORKLIFTS - SA Goscor (Doosan & Crown) Mitsubishi Linde Barlow Handling (Hyster / Utilev) Jungheinrich Manhand Nissan (Unicarrier) TCM (Unicarrier) Komatsu Tailift 19
Competitors PORT EQUIPMENT – SA 600SA Kalmar Palfinger Hyster Smith Capital Sany Cargotech – Hiab MAFI TFM Waste Duncanmec Crane & Forestry Bonfiglioli Liebherr Grove Terex Cranes 20
21
Exclusive Brands 22
UK MAP CURRENT Current Market Coverage Position Hull Market Size - 33,000 pa Doncaster Hull Docks Impact Direct Coverage - 58% Manchester Boston Sub-Dealer Coverage - 21% Total market Potential - 79% Nottingham Norwich Current Impact Business Statistic: Ipswich Birmingham Hire Fleet Size - +4,600 units Corby COP Fleet Size - 4700 units Projected Market Share - 4.2% Melksham Employees - >300 23
Market Trends - UK UK FORKLIFT UNITS ORDERED 40 000 34 440 35 000 33 275 32 807 30 950 30 014 31 069 30 273 30 301 30 000 26 286 26 972 27 095 26 544 25 000 22 044 20 000 17 767 15 000 10 000 5 000 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: World Industrial Trucks Statistics (WITS) 24
Key Accounts – UK 25
Top Rental Customers - UK Leasing Book Composition - UK 17% % of Leasing Book Made Up By Top 10 Rental Customers 5% % of Leasing Book Made Up By Largest Customer Rest 78% 26
Competitors - UK Forklifts Port Equipment Toyota Kalmar Mitsubish Hyster Linde Sany Briggs (Hyster / Yale) Jungheinrich Unicarriers 27
EIE Divisional Strategy Sustainable Operational Maximise Innovation Differentiated Capital Excellence / Global and Bold Solutions Structure Efficiency Opportunities plays Overheads to revenue Working capital to Expand UK business Growth in Africa Implement Mobile of 10% in SA and revenue of 15% – All products through acquisition mechanic and 15% in UK Incident Expand business in Identify management (proof Overhead recovery Europe through international of concept phase) from aftermarket of strategic acquisitions – markets for used 130% equipment Scandanavia Microsoft Dynamic (Norway/Sweden) CRM system Level 4 BBBEE rating Expand global Identify footprint in UK Fleet management I- Health and Safety complementary and Europe Site and GPS system through strategic distributorships in (implemented and Southern Africa – partnership with rolling out) Access Platforms, MCFE/Unicarriers Racking/Dock Develop AGV levellers/Roller doors Investigate systems and product growth for warehouses, range for future Forklift Attachments opportunities demand with TICO 28
Cash Flow Cycle NO CASH FLOW Equipment is ordered once a month and shipped weekly on a Thursday PURCHASE Interest Bearing Parts are ordered three times a week and shipped with Stock from OEM Equipment Debt (airfreight is only in cases of emergency) Equipment Parts Cash Sales are invoiced on delivery NO CASH FLOW Rental Sales are invoiced monthly in advance CASH FLOW OUT Parts are invoiced to Service and Maintenance Department SELL PAY Stock to Customer Parts are invoiced over the counter Local OEM Salaries, Cash Rental Inter-Dept. Suppliers Tax, VAT, Interest Cash Sales are collected 30 days after invoice date CASH FLOW IN Rental Sales are collected 30 days after invoice date Parts sold to maintenance and service are processed through RECEIVE the loan accounts – NO CASH FLOW Payment on Sale Parts sold over the counter are paid for upfront Cash Rental
Recommend
More recommend
