Mercedes–Benz South AfricaPlant East London

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Mercedes-Benz group of companies in South Africa

MBSA leadership structure

Roy McAllisterCEO SMH

Jasper Hafkamp

Executive Director Daimler

Trucks & Buses

Florian SeidlerCo-CEO & Executive Director Mercedes-

Benz Cars

Abey KgotleExecutive Director Human Resources

Andreas EnglingCEO MBSA &

Executive Director Manufacturing

Carsten SpohrCFO MBSA &

Executive Director Finance & Controlling

Nadia TrimmelVice President Mercedes-Benz

Vans

Joerg EssigCEO Mercedes-Benz Financial Services

Zwartkop, Pretoria� MBSA Headquarters� MBSA - Sales and Marketing� MBSA - Parts� MB Financial Services� dFM

Employees 600

East London� MBSA - Manufacturing� MBSA - Group HR� dFM regional office

Employees 2,659

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Mercedes-Benz group of companies in South Africa

MBSA locations

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CEO MBSA & Executive Director

Manufacturing

Executive DirectorHuman

Resources

BodyshopC-Class

Paintshop

AssemblyC-Class

CV Manufacturing

Logistics

QualityManagement

Controlling

Information Technology

Human Resources

Andreas Engling AbeyKgotle

TBC

Aidan Hartwanger

Gladstone Mtyoko

ProductPlanning

PrakashJohn

IanJudd

Andre de Beer

ProcurementProd. Mat.

Steffen Mauersberger

Tom Cawood

TarynWoodbridge

GoodmanLucwaba

Central Maintenance (TSS)

ArvidBamberger

MihlaliSogoni

East London, South Africa: Plant Management

Corporate Affairs

Feliciano Janneker

1948 Car Distributors Assembly (CDA) founded in East London

1958 First Mercedes-Benz vehicles built by CDA

1982 Assembly of Honda cars starts

1993 Assembly of W201 (C-Class precursor) starts

1994 Assembly of W202

1998 DCAG acquires 100% shareholding

2000 C-Class CBU Production starts

2007 New W204 C-Class launched

2008 MMC Triton launched

2011 W204 C-Class face-lift

2014 W205 next generation C-Class

2015 Production of 1 millionth Mercedes-Benz passenger car

2016 Start of production of W205 Hybrid vehicles

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Mercedes-Benz footprint in South Africa

Manufacturing timeline – Passenger Cars

More than 50 years of Truck Manufacturing Experience

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1962 First L type Mercedes-Benz Truck built

1981 Assembly of Unimog to 1990

1982 Assembly of 0305 Coach Chassis to 1988

1986 Assembly of MB TRAC to 1990

1996 Assembly of Freightliner

2002 Truck manufacture outsourced to BEE company

2002 Assembly of FUSO

2008 CV Re-integration to MBSA

2008 R50 mil Facility upgrade, capacity for 10 000

2010 Assembly of OH Bus chassis for Soccer World Cup

2013 Assembly of Rea Vaya bus for Johannesburg tender

2013 Introduction of new series Canter Lift FE6 & FE7 Duonic

2014 Introduction of new MB Axor 3535K twin steer

Presentation title in CorpoS (Body) 9 pt | Department | Date7

MERCEDES-BENZ C-CLASS

MERCEDES-BENZ TRUCKS

MITSUBISHI FUSO TRUCKS

MERCEDES-BENZ BUSES (CHASSIS)

Best products and services

Wide and balanced product portfolio

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Unrivalled Partnership and Inspired People

The C-Class story: We build it

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Unrivalled Partnership and Inspired People

The C-Class story: We build it

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Unrivalled Partnership and Inspired People

East London plant – A history of quality excellence

• Synovate Award: Best local manufacturing plant• Synovate Award: C-Class achieves number one position in the medium segment

• Synovate Award: C-Class ranks number one in terms of product quality • JD Power: Best local manufacturing plant

• JD Power: Best local manufacturing plant for the second consecutive year• JD Power: C-Class achieved second place

• JD Power: Gold Award - best manufacturing plant in Europe, Africa and America in terms of manufacturing quality

• Synovate Award: Best Local Manufacturing Plant SAC-Class best Quality, Gold Award in its segment

• JD Power: Best local manufacturing plant for the fourth consecutive year• JD Power: Platinum Award- best manufacturing plant in Europe, Africa and America in terms

of manufacturing quality

• JD Power: Gold Award- best manufacturing plant in Europe, Africa and America in terms of manufacturing quality

2006

2007

2008

2009

2010

2011

2012 • JD Power: Silver Award- second best manufacturing plant in Europe, Africa and America in terms of manufacturing quality

2013 • JD Power: Silver Award- second best manufacturing plant in Europe, Africa and America in terms of manufacturing quality

2014 • JD Power: Silver Award- second best manufacturing plant in Europe, Africa and America in terms of manufacturing quality

2015 • Ipsos Quality Award - Best local manufacturing plant

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Best products and servicesManufacturing the best products

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Unrivalled Partnership and inspired people

Excellent capacity utilisation in W204 to W205 change-over

Technical capacity after W205 implementation by 2015 – greatly improved with third shift added

44 41.4 34.7 23.351.2 41.1 52.2 54.3 60 50 48.1

102.28.3 9.68.3

8.6

1.21.5 1.7 0.6

3.3 3.8 56.3

7.82.9

3.7 5 5.35.6 6.3

4.5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016C-Class MMC Commercial Vehicles

Units in thousands

W205

Production steadily increasing | Benchmark EfficiencyEast London Plant - a strong partner in the Daimler network

50 48

102114

5.6 6.3

4.54.7

2013 2014 2015 2016 2017

CommercialVehicles

C-Class

W205

PRODUCTION

improvement28%

HOURS PER VEHICLE

Passenger Car production volume rounded to the nearest thousand. Commercial Vehicle production volume rounded to the nearest hundred.

Continuously investing to further improve efficiencies and build for the future

Improving and preparing

C 350 e | Launched in Q3 2016

Total Investment in 2016:

R461m

Product projects:(including Hybrid)

R259.3mStructure projects:

R98.7m

Plant projects:(quality improvements etc)

R98.6m

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Best products and services

Advanced manufacturing systems and processes

• New Bodyshop with one of the highest technology levels worldwide, with increased aluminium content for the W205 (e.g. laser welding, laser brazing, in-line quality measuring, high strength steel, ‘best fit’).

• Water-based paint and CeramiClear Coat, and optimised KTL and Pre-treatment process. New assembly lines for all product lines (C-Class, Commercial Vehicles and Buses) based on the Mercedes-Benz production system.

• Just in Time (JIT) / Just in Sequence (JIS) suppliers located in two supplier parks next to the plant.

• Hybrid production requirements, saw significant changes to our facility such as a new Lifter and High Station installed into the Assembly area to accommodate some of the additional work content.

Electrifying our passion | The C350e Plug-in Hybrid

Most advanced shopfloor in South Africa

Certified consumption figures of just 2.1 litres of fuel per 100 kilometres. This corresponds to CO2 emissions of 48 grams per kilometre.

Driving performance | Built right here in AfricaAnnouncing production of AMG models in South Africa

Investment in excess of:

R200m

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99.2%

Plant level agreement that builds on and/or amends the NBF Agreement and the Recognition Agreement to give effect to plant specific needs

• Supports the relationship between the company and the unions/shop stewards

• Roles and responsibilities, training and development of shop stewards• Work Organisation Principles e.g. work/shift model, contractors,

production calendar, short time fund etc.• Performance Based Reward (PBR)• People Management• Social Investment

Unrivalled Partnership and Inspired People

One of the highest attendance rates in the world

2010 20122011

98.8% 98.9% 98.6%

2013

98.4%

2014

98.2%

2015

99.2% 99.2%

2016

99.2%

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Pressing of aluminium skin panels MA Automotive

Complex laser welding RG Brose – seat structure

In-mould grainingJCI – door panel

Roll forming Linde & Wiemann

- longmember

Natural fibre pressing JCI – door panel

Rear axle carrier welding with cooling

fixtures

Top Speed to Customer & Innovation

New technologies to the region as a result of W205

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* Just In Sequence - supplier

Unrivalled Partnership and Inspired People

Increase in supplier investment in East London for the W205

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Unrivalled Partnership and Inspired People Engaging our communities

Our passion drives us to be the best …

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