1. Automechanica 2011 Overview of Investment Opportunities J F S Technology (PTY) LTD

2. Sales , Imports, Exports and Production Investments by OEMs Vision 2020 Automotive Production and Development Programme Contact Details Agenda

3. Sales, Exports,Imports,Production Market dependant on GDP growth Production dependant on Investment growth

4. Sales, Exports,Imports,Production Market nearly doubled in 2006 before global crash Production exceeded market only 4 times; forecast looks good

5. Sales, Exports,Imports,Production Imports increase rapidly when economy grows Exports took a decade to catch up with imports

6. Capital Expenditure by OEMs Investment peaked in 2006 due to platform rationalisation A new OEM will require at least R 5 billion in fixed assets

7. VISION 2020Passenger & Light CVs To produce over a million vehicles anualy This is 350 000 more than 2012 forecast Growth expected mainly from exports Potential for 1 or 2 new OEMs OEM volumes will drive more component localisation New jobs to be expected Skills gap challenge

8. Background and Objectives of the APDP The APDP consists out of 4 pillars that will drive the programme: Import Tariff Protection . Vehicle Assembly Allowance (VAA). Production Incentive (PI). Automotive Investment Scheme (AIS). APDP Vehicle Assembly Allowance Production Incentive Automotive Investment Scheme Import Tariffs 8 Protection Rebates Support

10. 18% for CBU’s out of Europe via the EU preferential rate.

11. 20% for CKD components used by vehicle assemblers.FBU Import Duty Rate CKD Import Duty Rate MIDP MIDP APDP APDP

13. Introduction in 2013.MIDP APDP

15. Value-added = Sales minus Imported Components and Non qualifying Raw materials.

16. Additional 5% for vulnerable sub-sectors.

18. Leather (wet blue)

19. Aluminium (Ingot)

20. Steel ( Coil / bar)

21. Stainless steel (Coil)11

23. 5% - 10% Additional support providing certain requirements are fulfilled.

24. Limits to be placed to eliminate many small projects:

25. OEM Investments - project min value is R 30.0 Mio.

26. Supplier Investments - project min value is R 1.0 Mio.