Enx Group Limited · JSE:ENX
Enx — EIE Group — Investor Day (June 2017)
34 slides from Enx's investor day presentation, Jun 13, 2017
Slide 1: Capital Markets Day – 13 June 2017
CAPITAL MARKETS DAY – 13 JUNE 2017
Slide 2: Our History
Our History 1984 2003 Awarded Toyota Industrial 2011 Awarded International Excellence Terminated agreement with equipment distributorship Status by TICO Kalmar Industries as they came First forklift locally manufactured direct to market themselves and Moved into new larger premises signed
Slide 3: World Ranking 2015 (2017 see red #)
World Ranking 2015 (2017 see red #) 2
Slide 4: Our Structure
Our STRUCTURE EIE CEO Gary Neubert EIE EIE EIE HUMAN CAPITAL CFO MARKETING Ferial Leech Lindsy Taylor Karen van Diggelen FORKLIFT BUSINESS IMPACT HANDLING 600SA GROUP MANAGING DIRECTOR MANAGING DIRECTOR ACTING GENERAL MANAGER Shumani Tshifularo Terry Kendrew Rentia Grobler Toyota Forklift; BT; Raymo
Slide 5: Our Positioning Statement
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
Slide 6: Business Model
Business Model Value Add Distribute Rental Service, • Outright sales maintenance and Parts Refurbished units Used Sales Refurbishment of sold in second hand Repurchasing of second hand market OR second hand units units utilized in short term lease fleet 5
Slide 7: Value Chain: Revenue
Value Chain: Revenue 26% 29% 6% 39% Distribution (New Equipment) Sell (Used Equipment) Rental Value add (services, maintenance, parts) 6
Slide 8: Staff Numbers
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
Slide 9: Our Key Differentiators
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 serv
Slide 10: Toyota Forklift
TOYOTA FORKLIFT Toyota Forklift founded in 1984 32 Years BT Warehousing Equipment Flexi 2010 1993 Raymond 2006 9
Slide 11: JCB/Hako
JCB/HAKO Hako Industrial Cleaning Equipment JCB Teletruck in 2008 2007 10
Slide 12: Industrial Power
INDUSTRIAL POWER Traction and Reserve Power 2013 11
Slide 13: Port Handling
PORT HANDLING Large & medium container equipment Container Lift Truck - EC Reach Stacker RST – FC Terberg 12
Slide 14: Lifting, Loading & Waste Management 2012
600SA Lifting, Loading & Waste Management 2012 13
Slide 15: Market Trends - SA
Market trends - SA SA FORKLIFT UNITS ORDERED 12 000 10 000 9 525 8 737 8 346 8 390 8 000 7 536 7 310 7 217 7 200 6 927 6 931 6 767 6 105 6 000 4 799 4 000 3 687 3 562 3 691 3 302 2 000 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: World Industrial Tru
Slide 16: African Market Coverage
African Market Coverage 15
Slide 17: Target Market
Target Market Agricultural Logistics Manufacturing FMCG industry Retail Automotive Mining Container handling Airports Waste Port operations Municipalities management Government Contract cleaning 16
Slide 18: Key Accounts - SA
Key Accounts - SA Ele Ww Nampak TIGER BRANDS 17
Slide 19: Broad Customer Base - SA
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
Slide 20: Competitors
Competitors FORKLIFTS - SA Goscor (Doosan & Crown) Mitsubishi Linde Barlow Handling (Hyster / Utilev) Jungheinrich Manhand Nissan (Unicarrier) TCM (Unicarrier) Komatsu Tailift 19
Slide 21: Competitors
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
Slide 22: Impact Lift Trucks
Ele IMPACT Lift Trucks We can handle it. 21
Slide 23: Exclusive Brands
Exclusive Brands Ele CAT iis PSS Aus FORKLIFTS UK co7er Distribution partner of sate nse KONECRANES We can handle it. 22 bale
Slide 24: UK Map Current
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% Nottingham Total market Potential - 79% Norwich Current Impact Business Statistic: Birmingham Ipswich Corby Hire Fleet Size - +4,
Slide 25: Market Trends - UK
Market Trends - UK UK FORKLIFT UNITS ORDERED 40 000 34 440 35 000 33 275 32 807 30 950 31 069 30 273 30 014 30 301 30 000 27 095 26 544 26 286 26 972 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 Truck
Slide 26: Key Accounts – UK
Key Accounts — UK Ele VN Ng ®Polypipe — Dunelm) mK ¥ ‘ N EOVIA BOMBARDIER &$ Perkins’ é\e C MACFARLANE We can handle it. 25 Lift Trucks
Slide 27: Top Rental Customers - UK
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
Slide 28: Competitors - UK
Competitors - UK Forklifts Port Equipment Toyota Kalmar Mitsubish Hyster Linde Sany Briggs (Hyster / Yale) Jungheinrich Unicarriers 27
Slide 29: EIE Divisional Strategy
EIE Divisional Strategy Sustainable Operational Maximise Innovation Differentiated Capital Excellence / Global and Bold Solutions Structure Efficiency Opportunities plays Working capital to Overheads to revenue Implement Mobile Growth in Africa Expand UK business revenue of 15% of 10% in S
Slide 30: Cash Flow Cycle
Cash Flow Cycle NO CASH FLOW Equipment is ordered once a month and shipped weekly on a Thursday PURCHASE Interest Bearing Stock from OEM Parts are ordered three times a week and shipped with Equipment Debt (airfreight is only in cases of emergency) Equipment Parts Cash Sales are invoiced on de
Slide 31: Basic Accounting Principles
Basic Accounting Principles KEY INCOME COMPOSITION ACCOUNTING TREATMENT STATEMENT Sales of goods for CASH are invoiced on delivery (30 day terms) Sales (new, used and parts) Sale of goods on RENTAL are invoiced monthly in advance over lease period (30 day terms) Rental (long and short term)
Slide 32: Basic Accounting Principles
Basic Accounting Principles Key Balance Sheet Line Item ACCOUNTING TREATMENT Units sold into rental fleet at cost and zero margin Fleet Recognised at depreciated cost of leasing assets Maintenance Fund Unrealised maintenance profits after monthly expense deduction Debtors Cash, rental and se
Slide 33: Health & Safety: Zero Harm
Health & Safety: Zero Harm Ele w ce | cE | GrOouP INDUSTRIAL EQUIPMEN Zero Harm Safety Campaign 2017 Safety is Your Responsibility
Slide 34: Business Strengths
Business Strengths 1. Annuity revenues 2. Diversified blue-chip customer base 3. Strong relationship with OEMs that results in many ancillary benefits 4. Market leader in SSA 5. Control over all aspects of distribution value chain 6. Long history of profitability 7. UK Growth opportunities 33