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EQSTRA UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015 1

INTERIM RESULTSFOR THE SIX MONTHS ENDED

31 DECEMBER 2015

AGENDA

3 GROUP OVERVIEW

10 DIVISIONALREVIEW

20 FINANCIAL REVIEW

35 OUTLOOK

37 QUESTIONS


GROUPOVERVIEW

4EQSTRA UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

LEGACYOutdated funding model

Market concerns

Capital market

Gearing limited divisional growth

Unbalanced risk portfolio during commodity peak

Unrealistic ROE targets

STRATEGY: BACKGROUND

CURRENT REALITYCore businesses healthy

Leaders in their fields; strong management

Geographical opportunities in stable markets

Growing market share and order books

Expanding services model

Mining sector capital constraints = opportunities

Proactive engagement with funders = balancing maturity profile


Implementation of 2020 strategy is based on:

Balanced capital structure

Evolving differentiated services business model

European market expansion

Recalibrate mining assets; focus on mining services

Operating efficiencies/margin improvement

Strong earning per share and cash generation

STRATEGY 2020

“Moving value globally,through powerful partnerships and creative solutions”


Selling of mining equipment in low demand – impairment of R736 million raised

Finalise sale of Benga assets – discontinued operations loss of R572 million,after taxation

Closure of non-core business units – discontinued operations loss of R112 million

Partnering of new revenue-generating assets to reach de-gearing targets

Reduced liquidity in South African capital markets

Credit rating limits access to capital market funding

Debt refinancing process

No dividend declared aligned with cash preservation policy

KEY CHALLENGES


PROGRESS

Reduce mining assets (all in use)

Cash preservation

FML African ERP rollout

Rationalisation of various businesses

Partnering of leasing assets

Conclude Benga (Mozambique) sale

Improve debt maturity profile

FML SA ERP rollout

European acquisitions/partnering

OEM partnering

FY20

16FY

2017

/18


SALIENT FEATURES– CONTINUING OPERATIONS

The results exclude discontinued operations

CASH GENERATEDBY OPERATIONS

BEFORE CHANGESIN WORKING CAPITAL

INCREASED

0.9%R1 496 million

to R1 510 million

OPERATINGPROFIT

INCREASED

7.1%R407 million

to R436 million

INTEREST-BEARINGBORROWINGS

INCREASED

0.3%R7 519 million

to R7 545 million

HEADLINEEARNINGSPER SHAREINCREASED

18.1%18.8 cents

to 22.2 cents


DIVISIONAL PERFORMANCE

DISTRIBUTION, LEASING RENTALVALUE-ADDED SERVICES FOR:

INDUSTRIALEQUIPMENT

ForkliftsPort equipmentLifting, loading and wasteOther industrial equipment

VALUE-ADDED CORPORATELEASING AND LOGISTICS FOR:

FLEET MANAGEMENTAND LOGISTICS

Passenger vehiclesLight, medium and heavycommercial vehiclesVehicle remarketingLogistics

OPENCAST MININGSERVICES:

CONTRACT MININGAND PLANT RENTAL

DrillingBlastingLoad and haulShort-term plant rentalLong-term plant leasing

REVENUE

R1 448mOPERATING PROFIT

R154mREVENUE-GENERATING ASSETS

R2 714mREVENUE CONTRIBUTION

35%

REVENUE




25%

REVENUE




40%

+4.3%

-5.5%

+8.0%

-6.9%

+5.2%

-4.5%

+4.8%

+46.2%

-47.0%


DIVISIONALREVIEW


DIVISIONAL CONTRIBUTIONS

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

Industrial Equipment Fleet Management and Logisics Contract Mining and Plant Rental

REVENUE-GENERATING ASSETS

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

OPERATING PROFIT


SOUTH AFRICA

SA forklift market negatively effected by economy

Refocussed; increased sales coverage

Increased market share

600SA performed below expectations due to low demand

Closed 600SA manufacturing and Construction Equipment businesses

Heavylift business re-positioned

INDUSTRIAL EQUIPMENT

INDUSTRIALEQUIPMENT

55%

19%

17%

9%Forklifts - SA

Forklifts - UK

Heavy equipment(trucks, cranes, port equipment)

Lifting, loading and waste

0

2 000

4 000

6 000

Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15

Total market EIE totalSource: World Industrial Truck Statistics (WITS)

SA FORKLIFT MARKET (half yearly units)

REVENUE




35%

+4.3%

-5.5%

+8.0%


UK/EUROPE

Forklift business performed above expectations

Market growth of 17%

Maintained market share

Mirror SA strategy - increasing sales coverage

Identifying acquisition and partnership opportunities

INDUSTRIAL EQUIPMENT

INDUSTRIALEQUIPMENT

55%

19%

17%

9%Forklifts - SA

Forklifts - UK

Heavy equipment(trucks, cranes, port equipment)

Lifting, loading and waste

0

200

400

600

800

0

6

12

18

Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15

EIE

UK m

ark

et

Tota

l UK

ma

rket

(000

)

Total market EIE totalSource: British Industrial Truck Association (BITA)

UK FORKLIFT MARKET (half yearly units)

REVENUE




35%

+4.3%

-5.5%

+8.0%


Forklift businesses remain core focus

South Africa: Maintain market share, aftermarket opportunity

UK: increase market share, aftermarket opportunity

Selective acquisition/partnering opportunities in the UK and Europe

Build partnerships in Africa

More rationalisation and efficiency opportunities

Overall healthy order book for the long-term leasing book and cash sales

INDUSTRIAL EQUIPMENT OUTLOOK

* SA/UK order book split

2 2262 127

2 3812 419

3 2002 872

2 4442 192

13871 052

972977

0 500 1 000 1 500 2 000 2 500 3 000 3 500

*Dec 2015*Jun 2015

*Dec 2014*Jun 2014Dec 2013Jun 2013

Dec 2012Jun 2012

ORDER BOOK (R’m)


59%25%

5%11% Passenger vehicles

Commercial vehicles

Logistics

Rest of Africa

Change in business model to integrated services continuesto improve quality of earnings

Improved PBT margin from 7.6% to 10.2%

Exited sub-optimal contracts

Gearing reduced from 3:1 to 2:1 resulting in net debt reduction of R199m

Maintained negative working capital (-6.5%)

Marginal decrease in revenue-generating assets in line witha structured replacement program

Reduced staff costs to revenue ratio

Closure of Commodities and Nigerian businesses

FLEET MANAGEMENT AND LOGISTICS

FLEET MANAGEMENTAND LOGISTICS

REVENUE




25%

-6.9%

+5.2%

-4.5%


Quest system roll out into SA H2’16 following African implementation

Further reduction of overheads through Quest visibility and cost efficiencies

Focus on core annuity income strategy; maintain quality client base

Alternative funding structures to support leasing growth

Continued diversification into services

Growth opportunities exist

FLEET MANAGEMENT AND LOGISTICS OUTLOOK

4 4545 130

6 0436 160

5 8426 228

0 500 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

Dec-15Jun 2015

Dec 2014Jun 2014

Dec 2013Jun 2013

*

ORDER BOOK (R’m)

*Exit of Commodities and under performing contracts. Clover fixed term contract.


Mozambique operations at Benga concluded in December 2015

Assets of R365 million earmarked for sales in SA, net of impairment of R736 million (R86 million excess assets costs)

Asset sales underway

Nsele contract commencement date extended to H2’16

Safety record: total project LTIF average 421 days in H1’16

Improved operational efficiencies impacting operating profit

Reduced revenue-generating assets by 44% since 2012; whilst keeping largest revenue contribution: “Doing more with less”

CONTRACT MINING AND PLANT RENTAL

CONTRACT MININGAND PLANT RENTAL

57%

8%

31%

4%SA contract mining

SA plant rental

Rest of Africa contract mining

Rest of Africa plant rental 41%

39%

36%

43%

39%

38%

16%

22%

26%

H1'16

H2'15

H2'14

PGMs Energy Other and plant rental

REVENUE




40%

+4.8%

+46.2%

-47.0%


MINING CONTRACTS

* The contract is under negotiation, operations are continuing

CLIENT COMMODITY LOCATIONMONTHLY VOLUMES

END DATE

Platmin – Pilanesberg Platinum Mine Platinum Northam, North West 1 600 000m3 03/21

Angloplat – Mogalakwena Mine Platinum Mokopane, Limpopo 400 000m3 12/15*

Tharisa Minerals Chrome Buffelspoort, North West 1 250 000m3 11/20

Exxaro – Dorsfontein East Coal Kriel, Mpumalanga 1 300 000m3 03/16*

Nsele Coal Coal Delmas, Mpumalanga 1 000 000m3 04/21

Sephaku - Aganang Mine Lime stone Lichtenberg, North West 125 000m3 03/17

Boteti - Karowe Diamond Mine Diamonds Karowe, Botswana 500 000m3 12/20


Global commodity pressures reduce miners capex; contract mining opportunity

Immediate opportunities with existing clients (scope and tenure) and outside usual tender opportunities

Opportunities to further improve efficiencies, utilisation, maintenance spend and contracting model on existing projects

Creative partnering and solutions creating success

Impaired assets to fair value based on current market conditions with a view to sell

Additional volumes secured and new contracts secured on the back of performance and contracting models

Using existing balance sheet for growth

CONTRACT MINING AND PLANT RENTALOUTLOOK

15 43211 508

8 5088 933

6 1709 983

10 636

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000

Dec 2015Jun 2015

Dec 2014Jun 2014

Dec 2013Jun 2013

Dec 2012ORDER BOOK (R’m)


FINANCIALREVIEW


FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

GROUP INCOME STATEMENT

R’ MILLION H1’16 H1’15 % ch

Revenue 4 113 4 004 2.7

Net operating expenses (2 753) (2 703) 1.8

Profit from continuing operations 1 360 1 301 4.5

Depreciation, amortisation and recoupments (924) (894) 3.4

Operating profit 436 407 7.1

Net foreign exchange (losses) gains (16) 5

Impairment of leasing assets (736) -

(Loss) profit before net finance costs (316) 412

Net finance costs (300) (304) (1.3)

(Loss) profit before taxation from continuing operations (616) 108



GROUP QUALITY OF EARNINGS

R’ MILLION H1’16 H1’15

OPERATING PROFIT FROM CONTINUING OPERATIONS 436* 407**

Industrial Equipment 154 163

Fleet Management and Logistics 202 192

Contract Mining and Plant Rental 76 52

Corporate office 4 -

INCLUDED IN OPERATING PROFIT 120* 105**

Excess mining assets holding costs 86 68

Retrenchment costs 2 2

Section 54 stoppages at mining operation and closure costs 32 35



GROUP INCOME STATEMENT continued

The continuing EPS loss is primarily as a result of impairments on mining assets in Contract Mining and Plant Rental

Discontinued operations include:› Closure of Commodities and Construction Equipment business units› Conclusion of the Benga operations


(Loss) profit before taxation from continuing operations (616) 108

Income tax income (expense) 178 (28)

(Loss) profit for the period from continuing operations (438) 80

Discontinued operations

(Loss) profit for the period from discontinued operations (684) 72

(Loss) profit for the period (1 122) 152

Benga: R572 millionConstruction: R69 millionCommodities: R43 million



WEIGHTED AVERAGE SHARES IN ISSUE

MILLIONS H1’16 H1’15

Weighted average shares in issue, net of treasury shares 391.1 396.9

Weighted treasury shares sold for staff scheme 0.1 0.2

Weighted average shares in issue 391.2 397.1

Continuing operations

Basic and diluted HEPS (cents) 22.2 18.8

Basic and diluted EPS (cents) (112.5) 18.9

Discontinued operations

Basic and diluted HEPS (cents) (26.1) 18.1

Basic and diluted EPS (cents) (174.9) 18.1


VALUE CHAIN REVENUE STATEMENT

Above is based on continuing operations, excluding Corporate Office eliminations

H1’16 R’ MILLION Distribute Lease/rent Value-add Sell Total

Industrial Equipment 436 516 407 89 1 448

Fleet Management and Logistics - 560 304 190 1 054

Contract Mining and Plant Rental - 238 1 400 13 1 651

Total continuing operations 436 1 314 2 105 298 4 153

H1’15 R’ MILLION Distribute Lease/rent Value-add Sell Total

Industrial Equipment 552 395 362 80 1 389

Fleet Management and Logistics - 675 297 209 1 181

Contract Mining and Plant Rental - 252 1 283 40 1 575

Total continuing operations 552 1 268 1 939 338 4 097



H1’16

10%

32%

51%

7%

Distribute Rent/lease Value-add Sell

14%

31%47%

8%

VALUE CHAIN REVENUE STATEMENT

H1’15


AS AT 31 DECEMBER 2015

BALANCE SHEET – ASSETS

R’ MILLION H1’16 H2’15 % chRevenue-generating assets 8 030 9 982 (19.6)Inventories 1 108 1 062 4.3Trade and other receivables and derivatives 1 887 1 770 6.6Cash and cash equivalents 433 203 113.3Assets held for sale 1 181 - -Other assets 815 849 (4.0)Total assets 13 454 13 866 (3.0)

78%

11%11%

South AfricaRest of AfricaUK 73%

18%

9%OPERATING ASSETS

H2’15H1’16

Benga: R782 millionMining assets: R365 millionCommodities: R34 million


AS AT 31 DECEMBER 2015

BALANCE SHEET – EQUITY AND LIABILITIES

R’ MILLION H1’16 H2’15 % chTotal equity 2 885 3 770 (23.5)Interest-bearing borrowings 7 545 7 519 0.3Trade and other payables and derivatives 1 949 1 782 9.4Liabilities directly associated with assets held for sale 425 -Other liabilities 650 795 (18.2)Total equity and liabilities 13 454 13 866 (3.0)

0

3 000

6 000

9 000

12 000

2009 2010 2011 2012 2013 2014 2015 H1'16

Revenue-generating assets Interest-bearing borrowings

Benga debt: R259 millionBenga tax: R147 million

Commodities: R19 million



CASH FLOW STATEMENT

* Includes R196 million (2014: R292 million) of leasing assets transferred to inventory as a non-cash flow item

R’ MILLION H1’16 H1’15 % ch

Cash generated from operations before workingcapital movements 1 510 1 496 0.9

Working capital movements* 263 409 (35.7)

Cash generated from operations 1 773 1 905 (6.9)

Cash flows from interest and taxation (340) (348) 2.3

Net cash flows from operating activities 1 433 1 557 (8.0)

Net cash flows from investing activities (1 121) (1 356) 17.3

Net cash flows from financing activities (114) (169) 32.5

Net increase in cash and cash equivalents before effect of exchange rate 198 32


203

1 314

33

263

91

24

284

958

7

433

At beginning of the year

Cash generated from operations

Movement in finance lease receivables

Increase in working capital*

Decrease in interest-bearing borrowings

Taxation paid

Net finance costs and fx movements

Net capital expenditure*

Transactions with shareholders

At the end of the year


MOVEMENT IN CASHAND CASH EQUIVALENTS

* Changes in working capital and net capital expenditure have been adjusted for the leasing assets that were transferred to inventory as a non-cash flow item



CAPITAL EXPENDITURE


EXPANSION 452 676



Contract Mining and Plant Rental - -

REPLACEMENT (NET OF PROCEEDS) 702 674



Contract Mining and Plant Rental 277 234

TRANSFER TO INVENTORIES (196) (292)

Net capital expenditure 958 1 058


FUNDING POSITION – 31 DECEMBER 2015

* CTA – banks’ common terms agreement, which includes the Common Monetary Area and Botswana

FUNDING FACILITIES (R’ MILLION) FACILITY SIZE UTILISED HEADROOMRSA bank debt General banking facility 900 710 190

Liquidity facility 1 000 820 180Term facility 2 628 2 628

Botswana bank debt General banking facility 28 28Term facility 263 263

ECE backed debt US Ex-Im and Coface 136 136Total 4 955 4 557 398RSA non-bank debt Bond Maturity date 1 853

CP 22 Mar 2016 100EQS09 29 Nov 2016 100EQS05 25 Apr 2017 900EQS06 09 Apr 2018 340EQS07 09 Apr 2018 106EQS08A 04 Oct 2018 Amortising 279

Botswana non-bank debt Private placement 05 Sep 2018 28Total CMA funding 6 410 398Rest of world 1 731 1 394 337Total funding 7 804 735Cash and cash equivalent (433) 433Net funding 7 371 1 168


CMA (SA & BOTSWANA) BI-ANNUAL DEBT MATURITY PROFILE

CTA DEBT MATURITY PROFILE– 31 DECEMBER 2015

0

500

1 000

1 500

2 000

2 500

3 000

2H2016 1H2017 2H2017 1H2018 2H2018 1H2019 2H2019

ECA Overnight borrowings Commercial paper BondsLong term facilities Liquidity facility Botswana


DEBT DIVERSIFICATION

82%

4%14%

83%

6%

11%

80%

10%

10%

CMA (South Africa and Botswana)Rest of AfricaUnited Kingdom

69%

29%

2%

62%

36%

2%

59%

39%

2%

Bank debt Capital market ECAs

H1’16

H2’15

H1’15

H1’16

H2’15

H1’15

CTA DEBT DIVERSIFICATION GEOGRAPHICAL DEBT DIVERSIFICATION


OUTLOOK


Optimal capital structure will support earnings growthAppropriate partnering of leasing assets Pursue geographical opportunities in stable marketsFocus on quality of earningsCFO appointment to be announcedIndustrial Equipment: › Continue to focus on core business› Solid performance in the forklift businesses to continue in RSA and UK› A healthy order book in place to support annuity revenue growth

Fleet Management and Logistics: › Earnings remain robust› Drive VAP’s with measured expansion

Contract Mining and Plant Rental: › Disposal of impaired mining assets and seek opportunities with existing assets› Limit exposure of contract mining to 30% of group’s revenue-generating assets › Focus on efficiencies and contract management

GROUP OUTLOOK


QUESTIONS

IR CONTACT

HENK LINDEQUE+27 11 966 2523+27 82 876 [email protected]

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