Metair Investments LtdResults For The Year Ended 31 December 2006March 2007

Agenda

Welcome

Overview of Metair

Financial Review

Industry Review

Operational Review

Introduction to First National Battery

Strategic Review

Prospects

Overview of Metair

Listed on the main board of the JSE

Registered in 1948

Market capitalisation of approximately R1.8 billion

Portfolio of companies manufacturing and distributing products primarily to:

- OEM’s

- Replacement market

- Export market

Variety of products

Metair

Hesto Harnesses (Pty) Ltd

Smiths Plastics (Pty) Ltd Unitrade 745 (Pty) Ltd

Metindustrial (Pty) Ltd(Supreme Spring Division)

Tenneco Automotive Holdings SA (Pty) Ltd

Outside investment

(74.9%)

Smiths Manufacturing (Pty) Ltd

Smiths Electric Motors (Pty) Ltd Metindustrial (Pty) Ltd(First National Battery Division)

Hella South Africa (Pty) Ltd

Valeo Systems South Africa (Pty) Ltd

Overview of Metair Metair Group Structure

Radiators Heaters Air-conditioners Condensers Cooling fans Hoses and pipes

Headlights Lamps Horns Plastic injection mouldings Wheel trims

Blower Motors

Plastic injection mouldings

Batteries (includes non automotive)

Automotive cable

Coil springs Leaf springsStabilisers Torsion bars

75% 100%

100% 100%

100%

100%75%

100%

Wiring Harnesses

25.1%

Shock absorbers Struts Track control arms

49%

Front end modules

Outside investment

51%)

Outside investment

25%)

Outside investment

25%)

Overview of Metair 2006 financial results – Salient Features

Group turnover increased by 23% to R2 642 million (2005: R2 151 million)

Attributable profit after tax increased by 28% to R203.2 million(2005: R158.8 million)

HEPS increased by 27% to 3317 cents (2005: 2603 cents)

Dividend per share up to 1000 cents (2006: 850 cents)

Sales of components to OEM’s up 20% to R1347.4 million – 51% of group turnover

Automotive division gained market share in replacement market

Overview of Metair EPS

33.17

26.0327.78

22.97

15.39

10

15

20

25

30

35

2002 2003 2004 2005 2006

Compound growth – 21.2%

R

Overview of Metair DPS

10

8.58.5

7

54.5

0

2

4

6

8

10

12

2002 2003 2004 2005 2006 2007

R

Overview of Metair Cash generated by operations before working capital

R’m

Compound growth – 21.7%

362

280274

240

165

0

50

100

150

200

250

300

350

400

2002 2003 2004 2005 2006

20%

17%

21%21%

16%

0%

5%

10%

15%

20%

25%

30%

2002 2003 2004 2005 2006

Overview of Metair ROE

Percentage

Financial ReviewCallie van der Merwe

Abridged group income statement

31 December 31 December2006 2005

R’000 R’000Revenue 2,641,911 2,151,020Cost of sales -2,050,455 -1,692,776Gross profit 591,456 458,244Other operating income 30,142 50,698Distribution, administrative and other expenses -310,361 -261,511Operating profit 311,237 247,431Interest income 13,440 14,338Interest expense -6,846 -10,104Share of results of associates 7,100 3,236Impairment of investment in associate company 0 -12,906Profit before taxation 324,931 241,995Taxation -98,388 -70,540Profit for the year 226,543 171,455Minority interest 23,303 12,656Attributable to Equity holders of the Company 203,240 158,799

Turnover analysis

19.3%

52.1%

20.2%

8.4%

16.2%

51.1%

9.2%

23.5%

Non-auto Export After Market Original Equipment

Turnover Segmentation

2006 2005

Abridged group balance sheet Assets

31 December 31 December2006 2005

R’000 R’000ASSETSNon-current assets 696,931 576,137Property, plant and equipment 614,087 502,118Intangible assets 14,647 11,676Investment in associates 19,548 18,249Defined benefit asset 1,640Deferred taxation 10,759 9,094Other non-current assets 36,250 35,000Current assets 836,316 792,889Inventory 423,007 309,486Accounts receivable 345,499 248,428Cash 67,810 139,011Financial assets at fair value 0 95,964Total assets 1,533,247 1,369,026

Abridged group balance sheet Equity and liabilities

31 December 31 December2006 2005

R’000 R’000Share capital and premium 40,555 36,414Share-based payment reserve 2,551 1,831Treasury shares -101,508 -459Non-distributable reserves 16,755 12,389Retained earnings 1,039,954 893,084Ordinary shareholders equity 998,307 943,259Minority interest 79,055 43,651Total equity 1,077,362 986,910

Non-current liabilities 89,077 126,138Interest bearing borrowings 5,069 53,252Post-employment medical benefits 15,228 14,681Deferred taxation 68,780 58,205Current liabilities 366,808 255,978Trade and other payables 299,335 210,875Borrowings 13,052 15,829Taxation 9,092 9,687Provisions for liabilities and charges 15,569 13,154Bank overdrafts 29,760 6,433Total liabilities 455,885 382,116Total equity and liabilities 1,533,247 1,369,026

Cash flow statement

31 December 31 December2006 2005

R’000 R’000Operating activitiesProfit before taxation 324,931 241,995Non-cash items 37,247 38,857Working capital changes -119,915 -77,492Cash generated from operations 242,263 203,360Finance charges -6,846 -10,104Investment income 13,440 14,338Taxation paid -89,857 -74,434Dividends paid -57,055 -51,071Dividend income from associate 416 0Net cash inflow fromoperating activities 102,361 82,089Investing activitiesProceeds on disposal of interest in subsidiary 20,080 47,000Net cash used in other investing activities -165,065 -116,336Net cash outflow from investing activities -144,985 -69,336Net cash outflow from financing activities -147,868 -14,645Net decrease in cash and cash equivalents -190,492 -1,892At beginning of the year 228,542 230,434Cash and cash equivalents at end of year 38,050 228,542

Financial management

Each subsidiary is run on an autonomous basis with broad guide lines set by group

Annual financial directors conferences are held where global parameters are agreed for budgeting purposes as well as financial parameters developed and group standards set

Strict criteria in place for capital investments- Projects must achieve an IRR of 18% over 5 years- Plant and machinery is amortised over the same period- Assumption is that working capital is realised in the 6th year- The ROA to render 22% within a reasonable period when capacity is reached.

Contracts with OEM’s include pricing adjustments for:- Currency movements- Commodity price movements- Negotiated movement in operational expenses

100% of capital imports are covered forward at the time of signing the capital request

50% of net component import exposures are covered forward

Industry ReviewTheo Loock

South African vehicle market growth

2000 2001 2002 2003 2004 2005 2006 F 2007

Total vehicle sales (including non-NAAMSA & excluding exports)

UnitsGrowth

354 632–

382 5297.9%

363 184-5.1%

382 6005.3%

481 52025.9%

617 45028.2%

714 34015.7%

771 0007.9%

Total exportsUnitsGrowth

68 031–

108 29359.2%

125 30615.7%

126 6611.1%

110 507-12.8%

139 91226.6%

179 85428.5%

220 00022.3%

Total domestic productionUnitsGrowth

356 250–

406 14914.0%

404 441-0.4%

421 3354.2%

455 0528.0%

525 27115.4%

614 00016.9%

682 00011.0%

GDP % 3.5% 2.7% 3.7% 3.1% 4.5% 5.1% 4.6% 4.1%

Source: NAAMSA; Economist Intelligence Unit; Business Monitor International (BMI)Source: NAAMSA; Economist Intelligence Unit; Business Monitor International (BMI)F = forecastF = forecast

Total local passenger vehicle sales – units

210 198184 195 192

256273 268

235214

234252 242

258

328

420

482

514

0

100

200

300

400

500

600

'90 '92 '94 '96 '98 '00 '02 '04 '06

000's

Source: NAAMSASource: NAAMSA

Total vehicle production and Exports – units

Source: NAAMSASource: NAAMSA

7200

00

2350

00

2500

00

2700

00

8070

00

7590

00

389,

476

386,

311

362,

104

312,

055

326,

065

356,

250

406,

149

404,

441

421,

335

455,

052 52

5,27

1

614,

000 68

2,00

0

15,7

64

11,5

53

19,5

69

25,8

96 59,7

16

68,0

31 108,

293

125,

306

126,

661

110,

507

139,

912

179,

854

220,

000

33 33 33

29

32

8

5

34

24

1819

27

3130

27

0%

10%

20%

30%

40%

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 07 (P roj) 08 (P roj) 09 (P roj) 10 (P roj)0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Total vehicle production - units Total vehicle exports - units %Exports

354,

632

382,

529

363,

184

382,

600 48

1,52

0

617,

450 71

4,34

0

646,

200

771,

000

810,

000

847,

000

895,

000

658,

278

710,

900

765,

143 83

7,98

6 914,

881

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2000 2001 2002 2003 2004 2005 2006 NAAMSAoriginal

2006forecast

BMIoriginal

2006forecast

2007 2008 2009 2010

NAAMSA BMISource: NAAMSA; BMISource: NAAMSA; BMI

Actual

Forecast

South African new vehicle sales forecast

Operational ReviewTheo Loock

Operational Review

Domestic production increased to 587 719 vehicles in 2006 compared to 525 227 in 2005

Focus on continuous improvement programmes and Japanese Production Systems

Business model with JV partners is to achieve globally benchmarked production, delivery and quality standards

Headcount increased to 5 697 from 5 186

Smith Plastics received the Supplier Recognition Award

Capital expenditure

Capex over the past 3 years was as follows:

- 2006: R166 million

- 2005: R112 million

- 2004: R108 million

2007 Capex is budgeted at R90 million – a significant portion will be invested in increased capacity at First National Batteries for non-automotive and automotive aftermarket products

The businesses have invested sufficient capital to cope with the growth in production expected

in 2008 and 2009

First National BatteryLouis Laubscher

1931 2006

6 Buxton Street, East London

Settlers Way, East London : 9 200m2 Factory

AUTOMOTIVE BATTERY MANUFACTURING8000 Batteries per day

also Technical Centre

Buffalo View Road, East London : 6 000m2 Factory

INDUSTRIAL BATTERY MANUFACTURINGForktruck Batteries : Standby Batteries : Mining Batteries

Fort Jackson : 3 800m2 Factory

PLASTIC INJECTION MOULDING50 Ton – 860 Ton Injection Moulding Machines 20 Million Pieces per annum

also Toolroom

Liverpool Road, Benoni

LEAD SMELTER10 000 Tons Recycled Lead per annum

also Warehousing & Distribution : Formation & Finishing Line : Marketing & Finance Divisions

4 Dedicated Manufacturing Sites

East London Automotive Battery Factory

East London Automotive Battery Factory

The First Speedshift Automotive Battery Production Line on the African Continent

Spine Caster

Tube Filling

Computerised Acid Mixing

Oxide Mill

East London Industrial Battery Factory

850 Ton Nissei Injection Moulding Machine

Tool Design with Autocad2d and 3d Battery Lid Tool

Fort JacksonPlastics Processing Plant

Interior view of Fort Jackson

Battery Breaker

capable of producinglead alloys of the highest quality

Pb

Source of feedstock for lead smelter and polypropylene scrap for recycling

Rotary Furnace

Standby

Mining

Materials Handling

Solar

Franchise

Replacement

Original Equipment

Industrial Automotive

Export

Market Segments

Strategic Review & Prospects Theo Loock

Strategic Review

Wesco exits to Coronation Capital and Royal Bafokeng Holdings

Stronger focus on activating balance sheet

Exciting growth platform – well placed to be industry catalyst

Experienced management team

Growth strategy – organic and acquisitive

Investment criteria

Prospects – Industry

The overall prospects remain positive for 2007 on the back of continued GDP growth

Industry production expected to expand to 662 000 vehicles during 2007 benefiting from export growth

Two high volume locally produced vehicles will run out in 2007 and new replacement models will be launched

The labour environment is predicted to be challenging in 2007

Prospects - Metair

2007 will be a challenging year compared to 2006, before picking up in 2008

Industry is awaiting Government’s announcement in regard to the continuation of the Motor Industry Development Programme

The exchange rate remains an important factor

Continue to pursue opportunities in the South African automotive component manufacturing sector