5TH FEBRUARY 2019 INVESTOR PRESENTATION

Building Industry Overview

Market Analysis

Who are we?

Divisional Focus

General

Strategic Intent and Areas of Focus

Agenda

Building Industry Overview

South Africa Market size

Industry Indicators

Industry Indicators

Industry Indicators

Market Analysis

South Africa Market AnalysisLocaltrade(personalisedservice) SPECIALISED Corporatetrade(focusedcontracts)

ENTR

EPRE

NEU

RIAL

BASICS

CORP

ORA

TE

Localbasics(personal,butpricier) Nationalbasics(impersonalbutcheap)

Competitor116%

Competitor213%

Competitor311%

TheBuildingCompany10%

Competitor44%

Independants46%

MARKETSHARE

South Africa Market Analysis

Who are We?

Vision and Mission

Acquisition of Iliad(Dec 2015)

PennyPinchers & Hardware Warehouse becomes BUCO(2017)

Acquisition of BSG (Building Supply Group)(2017)

Corporate Name Change Steinbuild -> The Building Company

(2019)

Company History

The Building Company - Divisions

The Building Company - Store Footprint

Divisional Focus

Retail

General merchants in urban, peri-urban and rural areas

Various store models within this division

50:50 Account vs Cash business

Predominantly contractor based

BUCO retail brand building

Specialist Timbercity and BUCO trusses businesses

Ecommerce project

Retail - Key Features

Retail – Brands and Stores

Retail - Store Footprint

The techno-savvy, “strategic” professional

Traditional Contractors

New Player on the block

Many of the current environments are not welcoming & embracing this

important segment

Secondary market –although lots of

potential to better address the needs of

the younger generation

Current customer strength

Retail - BUCO Customers : Contractors

Reluctants

Avids

Basics Decorators

Current customer strength

Difficult market to enter – requires fashion

& finishes emphasisKey to metropolitan

upper end, but in strong contrast to current

competencies

Secondary market –with strong peri-

urban/rural presence, this is a core secondary

market

Retail - BUCO Customers : DIY

Store physical sizes (minimum)

Merchant Store Cash Store Timbercity A B

Retail 2 000 2 000 750 4 000 2 000 Bulk Storage 2 000 1 000 4 000

Cut Shop 500 1 000 500

Under Roof 4 500 2 000 2 750 8 500 2 000

Yard 4 000 2 000 2 000 1 000

Parking 1 500 1 000 500 4 000 1 000

Total for site 10 000 5 000 3 250 14 500 4 000

Retail - BUCO Store formats

Retail – BUCO Store Model

Retail - BUCO Front Façades

Retail - BUCO Wonderpark

Wholesale

B2B wholesale based break-bulk business model

99% account credit based business

Product brand strategy

Large sourcing and importation component

Long lead to cash conversion

Portion of sales – intercompany

Export into Africa

Wholesale – Key Features

Wholesale – Brands and Branches

Wholesale - Branch Footprint

Wholesale – Brands

Specialised

Specialised building material Specification and contracts based business70% account credit based businessSell along the value chain (quote to order timeline is unpredictable)

Architects, Quantity SurveyorsProperty DeveloperContractors (small to large)End user

Specialised selling skills with key account relationships

Specialised – Key Features

Specialised – Brands and Stores

Specialised - Store Footprint

Specialised - Ironmongery

Specialised – Equipment Hire

1,700 containers 3,200 Site Toilets1,300 sheds

Vacuum truck / ToiletFlat bed truck / ShedCrane truck / Container

Specialised - Flooring

General

BUCO - New Corporate Identity

Timbercity - New Corporate Identity

Community Involvement

Strategic Intent

Culture

Strategy

Structure

Areas of FocusConsolidate portfolio

Digest acquisitionsOverheads Selective “growth” opportunities

Economies of scaleProcurementBrand development

Efficiency improvementsSSC, ERP, Standardisation, Ecommerce

Product label development (Own and Private)Turnover vs trading margin

“Grow” market share

“Make our customer lives easier”