Merrill Lynch Conference Sun City 24 – 26 March 2014 Group revenue Revenue Sept 2013 Revenue Sept 2012 4% 8% 7% 7% 7% 53% 29% 2 50% 7% 28% Automotive and Logistics Equipment Southern Africa Equipment Russia Handling Equipment Europe Group operating profit Operating Profit Sept 2013 Operating Profit Sept 2012 60% 60% 51% 48% 50% 50% 42% 40% 40% 30% 30% 20% 20% 39% 12% 12% 10% 10% 2% 1% 0% 0% 0% -10% 3 2% -2% -10% -5% Automotive and Logistics Equipment Southern Africa Equipment Europe Equipment Russia Handling Corporate Equipment Division Caterpillar enhancing distribution model Objectives 1 Strengthening the Caterpillar-Dealer model 2 Enhancing customer focus 3 Achieving superior economics for Caterpillar and the dealer 4 Seizing opportunities / mitigating risks 5 Business overview Equipment southern Africa Market outlook by segment (Rm) 46% 34% 54% 31% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Building Construction 7 Heavy Construction Contract Mining Mining Houses Major surface mining opportunities 2013 - 2018 Coal Copper/Nickel Jindal (2015) Iron ore Uranium FQM – Kalumbila (2014) Gold Vedanta – KCM (2013-14) Vale/Rio Tinto –Tete (2013-) Exxaro Medupi Exp (2013-) Nippon Steel- Revuboè (2015) B2 Gold (2013-) ResGen – Boikarabelo (2015) Extract Resources – Husab CoAL – Makhado (2016) Kumba – Sishen (2013-) 8 Exxaro – Belfast Project (2015) Zonnebloem Xstrata (2016) Xstrata – Tweefontein (2013-) Anglo – New Largo (2017) Major infrastructure opportunities 2013 - 2018 Awarded and in progress Potential Refinery Dams, Rail, Ports, Roads Mine Infrastructure Infrastructure Backlogs North South Water Pipeline Power, Ports, Roads and Railways Various Road Rehab Neckartal Dam Mine Infrastructure Rail and Dams Mine Infrastructure and Provincial and Municipal Infrastructure 9 To commence short term 17 Strategic Integrated Projects (SIPs) developed and approved in South Africa We have the broadest mining truck line in the industry Helping customers choose the trucks that match precisely to their unique hauling needs 797F 793F 795F AC 793F AC MT6300 AC MT5500 AC 793D 789D 785D 785C MT5300D AC* MT4400D AC* MT3700 AC MT3300 AC CAT MECHANICAL DRIVE MINING TRUCKS CAT ELECTRIC DRIVE MINING TRUCKS UNIT RIG ELECTRIC DRIVE MINING TRUCKS 10 * Fully Caterpillarised former Unit Rig LMT Kumba | Electric Drive truck trial update ● Six Cat 795 AC trucks placed at Sishen (R250m) ● Performance is measured on • Fleet availability • Mean Time Between Failure • Life Cycle Costing ● Fleet performance is above contractual KPI targets to date ● Exceptional parts and component availability 11 Zambia | FQM Kalumbila ● Order of R1.1bn placed in 2011 for three Cat 7495 rope shovels and seven Cat MD 6640 drills ● 2 Rope shovels and 2 drills currently being assembled on site ● 39 local employees on site for the assembly of the machines First Cat electric rope shovel to be delivered in Zambia 12 Namibia | Swakop Uranium – Husab Project ● First machine, Cat 6060FS hydraulic shovel arrived in Walvis bay in September 2013; machine has been assembled, tested and handed over ● Assembly of second rope shovel and other machines in progress ● The whole fleet is expected to be commissioned by November 2014 ● Barloworld Operational team being put in place Components of the Cat 6060 in transit Total contract value R1.3bn Assembled shovel and Barloworld Equipment team on site 13 Southern Africa revenue profile 2013 Revenue by line of business 4% New equipment sales by industry 3% 11% 10% 42% 41% 11% 52% 26% New equipment sales Used equipment sales 14 Product support Rental Mining Construction EMPR Power Contract Mining Southern Africa sales history R‘000 25 000 000 20 000 000 41% 33% 15 000 000 36% 28% 10 000 000 34% 30% 5 000 000 46% 37% 0 2006 2007 2008 Equipment sales 15 2009 2010 2011 2012 Product support 2013 Equipment southern Africa – outlook ● January 2014 firm back orders at R3.6bn (Sept 2013: R3.55bn) ● EMPR large mining machine deliveries and site solutions expected to offset slowdown in CAT legacy mining sales ● Strong after sales activity to continue ● Continued growth in construction with solid prospects for the medium term ● Positive outlook for Rental operation based on current market conditions Firm Order Book (Rm) Southern Africa 0 Jan 2014 16 2 000 4 000 Sep 2013 Business overview Equipment Russia Commodities overview – Russia Oil Copper Industry value US$448bn Gold Industry value US$7bn Aluminium Industry value US$13.1bn Silver Industry value US$33.3bn Platinum Industry value US$8.8bn Nickel Industry value US$1.4bn 18 Coal Industry value US$1.7bn Diamond Industry value US$4.9bn Industry value US$4.4bn Russia revenue profile 2013 Revenue by line of business 2% New equipment sales by industry 2% 3% 3% 7% 33% 16% 71% 63% 19 New equipment sales Product support Mining Construction Used equipment sales Rental Oil and gas Other Power systems Russia sales history US$ ‘000 600 000 500 000 33% 27% 400 000 28% 300 000 25% 200 000 36% 24% 100 000 29% 25% 0 2006 2007 2008 Equipment sales 20 2009 2010 2011 2012 Product support sales 2013 Green field projects – surface Units US$ 21 2015 147 282m 2016 136 313m 2017 101 398m Underground greenfield mining projects SDS Ugol Region 1 Western and Eastern Siberia Yuzhnaya Mine – Lutuginskiy mine site: Coal reserves – 40 m tonnes Region 2 Yakutia and Russia Far East Anadyr UGMK Depressed coal market delaying investment Baykaimskaya mine (underground) Coal reserves – 68,7 m tonnes Magadan EVRAZ Holding Raspadskaya mine Coal reserves – 451 m tonnes Raspadskaya Koksovaya mine Coal reserves – 101 m tonnes SUEK JSC A.D. Rubana mine Coal reserves – 40 m tonnes Mirniy Yakutsk MC Kolmar Nerungryugol JSC Omsk Tomsk Novosibirsk Achinsk Krasnoyarsk Kemerovo Barnaul Nerungry Inaglinskaya Mine Coal reserves – 76,8 m tonnes Denisovskaya Mine Coal reserves – 64,5 m tonnes Abakan Chita MC Sibirskaya (Sibuglemet) Uvalnaya mine Coal reserves – 342 m tonnes 22 PetropavlovskKamchatskiy EVRAZ Holding Mezhegey Ugol Coal reserves – 700 m tonnes Construction/oil and gas – opportunity Railways Oil & Gas projects Region 1 Western and Eastern Siberia Kuyumba – Tayshet oil trunk pipeline Region 2 Yakutia and Russia Far East • implem. period – 2013-2016 • Length – 704 km • Cost – $3 bn Power of Siberia gas pipeline Anadyr • implem. period – 20122016 • Length – over 2700 km • Cost – over $13,6 bn Magadan Severo-Sibirskaya railroad • 2 000km (Nizhnevartovsk to Ust-Ilimsk (BAM)) • Stage: start 2016 – US$4bn Mirniy Yakutsk PetropavlovskKamchatskiy Ust-Kut GPP Omsk Tomsk Novosibirsk Achinsk Krasnoyarsk Kemerovo Barnaul Kyzyl-Kuragino railroad • 411,7 km • 2013 - Contractor chosen – Mostovik • US$5,57bn 23 Nerungry • 2,3 bn m3 of natural gas to be processed (INK) • Commissioning – 2014 Abakan Chita BAM railway • mega project (second spur of Baikal-Amur Mainline) • Stage: start in 2014 • $15 bn Equipment Russia – outlook ● Mining order book showing downward trend ● Gold under pressure with coal market still weak ● Continued branch infrastructure development throughout the territory remains key to growing long term market share Order book (US$m) Order book excludes EMPR orders retained by CAT to the value of US$28.7m – VT will receive margin via service fee Russia 0 Jan 2014 24 20 40 Sep 2013 60 Business overview Equipment Iberia GDP Forecasts 3.4% Spain starting to recover 1.5% 1.0% 0.8% 0.9% 0.5% -0.2% -0.1% -1.2% -1.6% -3.8% 2007 Actual 26 2008 2009 2010 2011 Previous forecast - Oct 2013 Source: IMF and Ministry of Economy Spain 2012 2013 2014 2015 Current forecast - Feb 2014 Machine Industry trend and outlook (Iberia) 25 000 20 000 Units 15 000 10 000 5 000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 27 Headcount • Headcount across the Iberian region has been reduced by 965 employees or 40.4% 3 000 2 500 2 388 2 363 2 146 2 000 1 954 1792 1 665 1 482 1 500 1 428 1 423 1 407 1150 1134 264 264 0 0 Jan 2014 Sept 2014 1 000 500 0 346 250 Sept 2007 Sept 2008 BW Iberia staff 28 SITECH + MYTRACTOR: 9 employees Sept 2009 Sept 2010 BW FSA Sept 2011 Sept 2012 BW MERA Sept 2013 BW STET Iberia revenue profile 2013 Revenue by line of business New equipment sales by industry 2% 25% 35% 38% 46% 35% 14% 5% 29 New machine sales Product support Mining Construction Used machine sales Rental Other Power * Construction includes contract mining Iberia sales history € ‘000 900 000 800 000 30% 700 000 600 000 30% 32% 500 000 34% 400 000 40% 37% 2010 2011 300 000 33% 35% 2012 2013 200 000 100 000 0 2006 2007 2008 Equipment sales 30 2009 Product support Equipment Iberia – outlook ● Iberian economy appears to have bottomed ● Order books continue at low levels but slightly better than 2013 ● Focus on maintaining market share, margins and cost control ● New Mining projects appear on the horizon ● Power systems sector remains solid ● Improved operating performance due to lower cost base Order book (€m) Iberia 0 20 Jan 2014 31 40 Sep 2013 60 Business overview Global Power Systems Power Systems opportunities Oil & Gas ● Good progress in penetration of international key accounts ● After sales growth in Angola and Russia ● Working with Concession holders and service providers on largescale projects i.e. Mozambique LNG and Karoo unconventional gas Electric Power ● Electricity shortfall and large-scale infrastructure development are driving the market ● Growing gas opportunities; cogeneration, landfill, greenhouses, etc ● Project participation and orders growing Marine ● Main prime and after sales opportunities with offshore vessels, ferries, cargo, governmental (military) and fishing (tuna) ● Emphasis going forward on gas propulsion, systems integration and coverage of international key accounts following CAT´s acquisition of Berg 33 Automotive and Logistics Strategic positioning Automotive and Logistics Division Customers Barloworld Automotive (Automotive Business model) Car Rental Motor Digital Motor Fleet Retail Disposal Retail Services Southern Solutions Australia Africa Freight Mangmt and Services Supply Chain Mangmt Supply Chain Mangmt Transpor t Solutions Communication, HR, IT, Legal, Finance, Sustainable Development, Strategy, Empowerment and Transformation, Risk Management, Business Development and Sales, Governance, Ethics and Compliance • Inter-business unit synergies and cost efficiencies • Apply Collective Wisdom 35 Barloworld Logistics • Leveraging Automotive infrastructure to achieve critical mass for growth • Retain strategic focus on each business unit Sense of scale General Information Employees 10 765 Countries 16 Automotive Principals Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz, Toyota, Volkswagen Car Rental locations >190 Wholly owned Motor Retail dealerships (SnA & Oz) FY Sep ‘12 FY Sep ‘13 Rental Days 5.71m 6.06m New & Used retail units sold 88 467 97 484 Total vehicles under management 227 019 277 164 76 83 Key Indicators New vehicles sold per dealership per month incl. Oz 36 40 DTS km’s travelled FY’13 75.0m SAT tons shipped FY’13 16 333t Operational review ● Strong overall result in a demanding trading environment ● Revenue: R34.4bn (FY’12: R29.5bn) – up 17% ● Record operating profit R1 479m (FY’12: R1 152m) – up 28% ● Operating margin for the year 4.3% (FY’12: 3.9%) ● All business segments performed well Operating profit (Rm) Margin +26% Car Rental +20% Motor Retail +39% Fleet Services +38% Logistics 0 37 150 2013 300 450 2012 600 7.7% 7.1% 2.5% 2.4% 16.7% 15.2% 2.3% 2.1% Integrated automotive and logistics business model delivers ● Revenue CAGR = 14% ● Operating profit CAGR = 27% Revenue and Margin Rbn Margin 40 ● Operating margins improved from 3.4% to 4.3% 5.0% 30 4.0% 20 ● Balanced mix of businesses delivers value through synergies 10 3.0% 0 2.0% 2011 2012 Revenue 2013 Margin Operating profit Rm 1 600 1 400 1 200 1 000 800 600 400 200 0 2011 38 2012 2013 Division overview ● Enhance return on equity ● Continued cash focus ● Targeted capital allocation ● Growing market share ● Optimising vehicle fleets (utilisation) ● Managing working capital levels ● Improving asset turn ● Expense management ● Controlling interest costs ● Implementing Logistics growth strategy ● Targeted growth opportunities across all units ● Exceeding customer expectations ● Australia negotiations 39 Car Rental ● Improved rental days despite competitive market ● Static revenue per day ● Continued focus on operating costs ● Fleet utilisation remains well controlled ● Continued solid used vehicle profit contribution ● Sustained customer satisfaction above 90% Leading indicators % Growth 15 10 5 0 -5 Rental days Rate per day Jan '14 YTD 40 Fleet utilisation Sept '13 YTD Fleet size Motor Retail Total South African Vehicle Market 900 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 Passenger 41 Source: RGT 2011 2012 2013 LCV 2014 2015 2016 M&HCV 2017 2018 Motor Retail ● Southern Africa • Fewer, Bigger, Better” Strategy continues • 71 new vehicles sold per dealership per month (Sep’13: 75) • Appropriate dealership footprint • Focused brand strategy aligned to overall Automotive business model presents some targeted growth • Improved operating margin through cost containment and margin expansion • Continued strong finance and insurance contribution Leading indicators % Growth 25 15 5 -5 New units Service hours Jan '14 YTD 42 Parts revenue F & I Net profit Sept '13 YTD Fleet Services ● Pleasing performance in low interest rate environment ● Finance fleet growth slows post large contract roll-outs ● Strong growth in fleets under maintenance ● Continued strong used vehicle profits ● COJ settled and performing well ● Awaiting adjudication on further tenders ● Investigating further African growth opportunities Leading indicators % Growth 25 15 5 -5 Maintenance fleet Jan '14 YTD 43 Finance fleet Total fleet Sept '13 YTD Logistics Good turnaround and positioned for growth ● Manline contributing strongly to the newly formed Barloworld Transport Solutions from 1 Feb 2013 ● Niche acquisition effective 5 Jun 2013, rebranded Manline Mega, is well positioned in the abnormal load transport market with further growth potential ● Successfully renewed all expiring contracts in Supply Chain Management and Dedicated Transport ● Awarded Pioneer Bakery fleet 4PL contract ● International operations continue to face difficult trading conditions • Restructured Spanish operations • Exited Far East business effective 1 Nov 2013 44 Merrill Lynch Conference
© Copyright 2024 ExpyDoc
