GLOBAL OPPORTUNI TIES AT THE GATEWAY TO AFRICA’S AUTOMOTIV E INDUSTRY

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 South Africa

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 The country is divided into

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 The country is divided into POPULATION The number of people living in the provinces also varies considerably. Gauteng, the smallest province, has the most people living there, while the Northern Cape, which takes up nearly a third of South Africa's land area, has by far the smallest population. This variation translates into huge differences in population density. Gauteng has an average of 675 people per square kilometre, while the Northern Cape has only three people for each square kilometre. Sources: Census 2011, Statistics South AfricaCensus 2011, Statistics South Africa Mpumalanga: 4.04-million Northern Cape: 1.15-million North West: 3.5-million Western Cape: 5.82-million Eastern Cape: 6.56-million Free State: 2.74-million Gauteng: million KwaZulu-Natal: million Limpopo: 5.4-million

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 The country’s DEMOGRAPHICS In 2011 the country’s population was just under 52-million, of which 51.3% were female and 48.7% were male. Africans are in the majority at just over 41-million, making up 79.2% of the total population. The coloured population 8.9%, while there are 8.9% whites. The Indian/Asian population stands at 2.5%. Population groupNumber% of total African % White % Coloured % Indian/Asian % Other % TOTAL % Sources: Census 2011, Statistics South AfricaCensus 2011, Statistics South Africa

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 South Africa’s 11 Official South Africa’s not called the rainbow nation for nothing. The country has 11 official languages, and scores of unofficial ones. English is the most commonly spoken language in official and commercial public life. Although English is the lingua franca of South Africa, there's considerable variation in home languages between the provinces. IsiXhosa, for instance, is spoken by almost 80% of people in the Eastern Cape, while around 78% of those in KwaZulu-Natal speak isiZulu. isiZulu is also the most common home language in Gauteng, but at a much smaller percentage. In Cape Town and its surrounds, Afrikaans comes into its own. Sources: Census 2011, Statistics South AfricaCensus 2011, Statistics South Africa

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 South African Currency… The Rand is the currency of South Africa Currency Symbol: R Code: ZAR It takes its name from the Witwatersrand (White-waters-ridge in English), the ridge upon which Johannesburg is built and where most of South Africa’s gold deposits were found. The rand is subdivided into 100 cents, symbol "c“. CURRENT EXCHANGE RATE: 1 US Dollar = 10 Rand 1 Euro = 13 Rand 1 Pound = 15.5 Rand

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER th-largest country by population (49,99 million) Is the 19th-largest global producer of electricity, Has the 18th-biggest road network in the world, and Has the 15th-longest network of railway tracks. One of the world’s most advanced banking systems English is the most spoken medium to conduct business with. South Africa is ranked among the top 5 countries in the world in respect of tourism growth (growing at 3 times the global average). Cape Town was named the top tourist destination in the world in the 2011 Traveller’s Choice Destinations awards.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 South Africa was the first African country to host the FIFA Soccer World Cup in It is only the second country in the world to have hosted the Cricket, Rugby Union and Soccer World Cups. South Africa is home to the world's largest individually timed cycle race (the Cape Argus Cycle Race), the world's largest open water swim (the Midmar Mile) and the world's largest ultra-marathon (the Comrades Marathon). Since the 1940’s, South African golfers have won more golf majors than any other nation, apart from the United States.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 The only street in the world to house 2 Nobel Peace Prize winners is in Soweto. Nelson Mandela and Archbishop Desmond Tutu both have houses in Vilakazi Street, Orlando West. South Africa ranks 12th in terms of beer consumption (China 1; USA 2; Russia 3; Brazil 4 and Germany 5). South Africa has 45 million active cell phones (population 49 million) – ranking in the top 5 globally in terms of cell phone coverage.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 South African Sold $1.8 billion worth of cars to the US in 2010 ahead of Sweden and Italy as suppliers to the US market. Car sales are projected to grow to 1.2million units by The South African Rand was the second best performing currency against the US Dollar between 2007 and 2011, according to Bloomberg’s Currency Scorecard. SA is ranked 10th out of 183 countries for good practice in protecting investors in business. (World Bank Doing Business Report 2011). South Africa ranks 11th out of 60 countries in the "Big Mac Index 2011" behind China, Hong Kong, Malaysia, Thailand, Russia and Egypt. The relative price of a Big Mac went down by 29% in South Africa. In Norway, it went up by 118%. South Africa is ranked 34th out of 183 countries for ease of doing business according to Doing Business 2011, a joint publication of the World Bank and the International Finance Corporation. South Africa ranks in the top 20 countries for agricultural output. Top producer platinum, palladium, rhodium, chrome (70%), manganese, vanadium, vermiculite, uranium, lead, copper, ferro-chromium (50%) & allimino sillicates. (41% of gold reserves) – 12% of catalytic converter industry.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 We provide a hand-holding itinerary for foreign visitors/exhibitors from the time of arrival at airport to return. Explore South Africa as a base for entry into the African continent. Join new and established brands in displaying your product to a focused Automotive related manufacturing target market with a large South African media contingent. Develop your brand nationally & Internationally. Establish partnerships and deals with businesses on the African continent. Network with key role-players with significant purchasing power in the automotive sector. Gain first-hand knowledge, information and analysis of the South African industry as well as trends and globally bench-marked manufacturing standards, processes and innovations. Personal translator We will assist you package leisure tours re Big 7, Beaches, Golf etc

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

PASSENGER CARS: BMW 3-Series 4-door Ford Focus, Icon Mazda 3 Mercedes Benz C-Class 4-door Nissan Tiida and Livina/Grand Livina Renault Sandero Toyota Corolla 4-door and Fortuner Volkswagen Polo new and old series LIGHT COMMERCIAL VEHICLES: Ford Bantam and Ranger Mazda BT-50 General Motors Chev Utility & Isuzu KB Mercedes Benz Mitsubishi Triton Nissan Hardbody, NP300, NP200 Toyota Hilux BUSES: Iveco MAN Mercedes Benz Scania Tata VDL Coach & Bus Volvo “Made in South Africa” GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

Babcock Fiat Freightliner Fuso General Motors Hino Isuzu Iveco MAN Mercedes Benz Navistar International Trucks Nissan Peugeot Powerstar Renault Trucks Scania Tata Toyota UD Trucks Volkswagen Volvo Trucks GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Performance Summary Total vehicle unit sales (incl. non-Naamsa) (+9%) Total passenger vehicle sales (+11%) Total domestic production (+1%) Total vehicle exports (+2%) % of best year 87% 91% 92% 98%

Industry BodyProjections (25/01/2013) Naamsa is predicting a 8.2% increase in total vehicle sales (22/01/2013) Retail Motor Industry Association CEO, Jeff Osborne expects the new vehicle market to grow by a 8% (1/2013) Business Monitor International (BMI) is forecasting a 7.8% increase in sales to reach 672,680 units (02/2013) Wessel Steffens, head of ABSA Vehicle & Commercial Asset Finance expects new vehicle sales growth of 5% in 2013.

Source: NAAMSA

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Automotive Production Development Programme (APDP), ( ) focuses on passenger cars, and offers Mercedes-Benz, Volkswagen, BMW, Toyota, Ford and Nissan a regulatory environment that allows for the mass-production of cars. In terms of the APDP any passenger car manufacturer who produces units or more a year can import 20% of their components duty-free. Production/Imports. Government wants trucks and buses to be built here too - "working on a support package" for the production of medium and heavy commercial vehicles. Mr Mlota confirms that Toyota is also in late stages of negotiations with the department to begin taxi manufacturing in SA. Along with Nissan and Toyota, he says "Chinese manufacturers, and other manufacturers linked to China" (a possible reference to Johannesburg-based Calibra Motor Corporation’s claimed plan to build a factory in Harrismith) are in talks with a specific interest in exporting products to sub-Saharan Africa. With regard to larger vehicles, and specifically buses, the department was looking to "ensure the leverage of government procurement". As a result, the government needs to offer a guaranteed market to a bus manufacturer "in order that we can industrialise" in SA. "It’s not that easy, but it can be done," Mr Mlota says. SA as the automotive industrial gateway into growing African markets for manufacturers of bakkies, trucks, taxis and buses. The Automotive Incentive Scheme (AIS) in the new Automotive Production and Development Programme (APDP) is set to provide a massive boost to capital expenditure by the motor manufacturing industry and job creation. Trade and Industry Minister Rob Davies said during his budget vote that the finalisation of the AIS had led directly to planned investments of R13bn by motor assemblers and component supplier companies, which would support jobs. Pitot said investments by component manufacturers were related to new models to be produced locally by Volkswagen, BMW, Ford and Mercedes-Benz. The investment incentive in terms of the AIS is 20 percent and tied to certain performance criteria, including volume growth, employment growth, new technology and localisation, with an additional incentive of 10 percent tied to performance. This MIDP incentive was based on exports while the focus in the APDP shifts from exports towards production, with a minimum annual production threshold of units.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Join decision makers, international delegations and the continent’s leading manufacturers at South Africa’s premier event for the automotive and related services sector.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Stimulate business agreements between buyers and suppliers with a focus on international trade Invite and assist international companies partner in Africa via South Africa Create synergy and partnerships with all auto industry roleplayers, private and government, incl logistics, supplier development, research, innovation, investment and tourism Establishing SA Automotive Week as the intellectual capital of Africa’s auto sector and meeting place for down and upstream members of the manufacturing supply chain. Explore a fast emerging economic landscape post recession with reference to diversification opportunities and the implications of non-oil driven vehicles. Africa is increasingly under the spotlight as a potential manufacturing base and market - growing prosperity across the Continent holds untapped potential for the automotive industry. The South African Automotive Week sheds light on these.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 South African Automotive Week is hosted bi-ennually Has endorsement and active participation of all industry associations and South African government at all levels Unique in its focus on component manufacturing Successful track record of international partnerships, FAW, Bentler, Goodpack, Powertech Batteries

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 International Trade Initiative Held in 2007, 2009 & 2012 in Eastern Cape AIDC Host Partner, secures rights for Gauteng 2014 Oct Alternates with JIMS Attracts 7500 business leaders International delegations Exclusive focus on component & manufacturing

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA 12 – 13 OCTOBER

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER Trade visitors 500 International buyers/investors/traders 350 exhibits, including 3 foreign pavilions. 620 match-making meetings Site visits and associated events Auto Industry Awards Marketing returns valued at R8m

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER Day Trade Show Matchmaking Meetings Programme Conferences & Seminars Industry AGMs & Meetings Automotive Awards Gala Networking Dinner Automotive Site Visits Leisure Tourism Opportunities Networking Golf Day

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Over 400 automotive companies were profiled on-line for South African automotive week. 655 meeting requests were made by participants, 350 were actioned by participants and 220 officially concluded over the duration of the Week. Numerous additional meetings did take place and were not recorded officially. Featuring delegates from across the globe including China, Germany, Belgium, India, Malaysia, Singapore, The United States and United Kingdom, over 220 one-to-one business match-making meetings were scheduled and concluded at the event alone. The meetings were highly successful and the show rates to confirmed meetings was incredibility high – there was a serious intention to meet and discuss business - “This can be credited to yourselves as the organisers as the show definitely attracts the right level of business participants.” – Comment from Tracy Watcham: CEO Outsmart Marketing.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Participants logged onto for their online diary, meeting schedule & requestswww.saaw.co.za

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Top industries requesting meetings – sending meeting requests

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 AUGUST LÄPPLE SA (Pty) Ltd PSA Peugeot Citroen DORBYL AUTOMOTIVE TECHNOLOGIES Ford Motor Company of Southern Africa General Motors SA GIRLOCK (SA)(Pty) Ltd Lumotech (Pty) Ltd ex Hella South Africa Toyota SA Motors AUTO INDUSTRIAL SPARTAN (Pty) Ltd FRUEHAUF COMPONENTS - A Division of Henred Fruehauf (Pty) Ltd Belessex Engineering Nissan Bell Equipment Limited BMW South Africa Eberspacher SA (PTY) LTD Johnson Controls Automotive SA

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 > 27000m² of exhibition space 2 fully equipped restaurants. Evaporative air cooling and heating systems, ducting with water, electrical and communication connections, and plenty of organisers' offices. Efficient access at street level, parking for more than 7000 vehicles.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Economic powerhouse of Africa. Gauteng Province contributes 33% of South Africa’s GDP and 10% African continent GDP! Gauteng was built on the wealth of gold found deep underground – 40% of the world's reserves. Johannesburg, also known as Joburg or Jozi, is the biggest city in South Africa, and is often compared to Los Angeles, with a similar urban sprawl linked by huge highway interchanges. Gleaming skyscrapers contrast with Indian bazaars and African medicine shops, and the streets throng with fruit sellers and street vendors. And it's home to the Cradle of Humankind, one of South Africa's eight Unesco World Heritage sites - one of the world's richest concentrations of hominid fossils, evidence of human evolution over the past 3.5-million years.

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Gauteng is the financial capital of Africa: more than 70 foreign banks have their head offices in the province, and at least that number of South African banks, stockbrokers and insurance giants. The Johannesburg Stock Exchange (JSE Ltd) in Johannesburg is the largest securities exchange in Africa. The province has the best telecommunications and technology on the continent, with correspondents for the world's major media stationed here, as well as South Africa's five television stations. It also has the highest concentration of radio, internet and print media in Africa. INDUSTRY:

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 International media invited to cover and attend National media campaign Sponsored media Room at event Coverage expected to exceed R10m

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014

GALLAGHER ESTATE MIDRAND JOHANNESBURG GAUTENG PROVINCE SOUTH AFRICA OCTOBER 2014 Inkanyezi Event Organisers (Pty) Ltd - FACILITATORS OF THE SOUTH AFRICAN AUTOMOTIVE WEEK POSTAL ADDRESS - PO BOX 40032, Walmer, Port Elizabeth, South Africa, 6065 PHYSICAL ADDRESS Cape Road, Greenacres, Port Elizabeth, South Africa CONTACT DETAILS - Tel : Fax :