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ABSA Bank and JSE Showcase 11 April 2013. Largest independent electrical distributor in Sub-Saharan Africa Focused on electrical and lighting products.

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Presentation on theme: "ABSA Bank and JSE Showcase 11 April 2013. Largest independent electrical distributor in Sub-Saharan Africa Focused on electrical and lighting products."— Presentation transcript:

1 ABSA Bank and JSE Showcase 11 April 2013

2 Largest independent electrical distributor in Sub-Saharan Africa Focused on electrical and lighting products Supply across all major market segments Extensive distribution network across South Africa Group Overview Power cables Overhead line conductors & equipment Low voltage products Lighting & lamps

3 Group at a Glance ARB Holdings Limited Corporate Electrical Lighting Electrical Wholesaling Proprietary Products

4 Electrical Wholesaling Founded in 1980 19 branches across SA (and growing) Over 15 000 stock items Over 6 000 customers (no customer =>3% of total revenue) Well established in industrial, construction, mining, parastatals and public sector Annual revenue approaching R2 billion

5 Geographic Footprint

6 Lighting Founded in 1991 Acquired 60% in January 2012 Over 4 000 stock items Over 1 800 customers Well established in retail and domestic sectors Owned brand SABS mark holder Recently introduced pre-packed electrical accessories range

7 Proprietary Products ACCC ® Conventional ACSR Conductor Comparison Steel Core Composite Core Unique, patented technologically advanced products Exclusive distribution rights for SADC

8 Financial Overview R’000 CAGR = 20%pa CAGR = 15%pa

9 Financial Overview R’000 Cents

10 6 Months to 31 December 2012 (excludes acquisition of Elektro Vroomen) Revenue Gross profit Operating profit Headline earnings Cash generated by operations Net asset value R1.0 Billion R196 million R76 million R43 million R25 million R596 million 27% 17% 50% 39% 11% 163% Ungeared with net cash of R153 million Interim Results

11 Share Statistics cents Dividend Policy 40% of after-tax profits (i.e. 2.5x cover) Dividend Policy 40% of after-tax profits (i.e. 2.5x cover) ARB share price has outperformed the JSE All Share, Industrial and Electronic & Electrical indices over past 4 years

12 Prospects – South Africa Market potential (Source: A review of SA’s electricity sector – January 2013 by Research Channel Africa) – Eskom requires 420 000 tons of new steel pylons over next 10 years – ACCC can reduce this significantly – DSM, RMR and 49M – all promote use of CFL and LED lighting – Eurolux

13 Prospects – South Africa Market potential (continued) (Source: A review of SA’s electricity sector – January 2013 by Research Channel Africa) 10 year Transmission Development Plan (R180 billion) - ACCC – R150bn to expand the transmission network, over 12 700km of new lines – R12bn on refurbishing of existing infrastructure Distribution infrastructure – Overhead Line division – Lifespan of a distribution network = 50 years (SA’s distribution network is 47 years old) – Protracted uncertainty of EDI vs REDs structure resulted in reluctance to invest in maintenance – Current backlog = R35bn – Need to spend R6.5bn per year (double the current spend) Electrification programme – Overhead Line and Low Voltage divisions – Budgeted spend = ±R3.5bn per annum – At current rate, will take another 20 years to achieve universal access to electricity

14 Europe Asia Africa: The Dark Continent Prospects - SADC

15 Experienced management & strongly independent board Successful in concluding value adding acquisitions Only listed focused distributor of electrical & lighting products Proven and robust business models across all segments Ungeared with R153 million cash on hand (Dec 2012) Value Proposition For further information please visit our website: www.arbhold.co.za


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