ABSA Bank and JSE S howcase 11 April 2013

1. ABSA Bank and JSE Showcase 11 April 2013

2. Group Overview • 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 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 • Unique, patented technologically advanced products • Exclusive distribution rights for SADC Conductor Comparison Conventional ACSR ACCC® Steel Core Composite Core

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

9. Financial Overview R’000 Cents

10. Interim Results • 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 39% • R1.0 Billion • R196 million • R76 million • R43 million • R25 million • R596 million 50% 27% 17% 163% 11% Ungeared with net cash of R153 million

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

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. Prospects - SADC Europe Asia Africa: The Dark Continent

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