UNITARY AIRCONDITIONING DISTRIBUTORS (PTY) LTD MISSION

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UNITARY AIRCONDITIONING DISTRIBUTORS (PTY) LTD
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MISSION STATEMENT

• We are committed to putting our customers first
  by providing unmatched cost-effective units that
  will foster L-T relationships with our clients
• We are dedicated to maintain professional
  standards
• We value our customers, agents and staff as our
  most important assets
• We believe in honesty, reliability and enthusiasm
  

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COMPANY HISTORY

• Uwe Gevers has owned the company since 1992
• The company has exclusively sold only Trane
  products in this period
• The sales history of the company is as follows
  (R million)
• 1993 2.73
• 1994 3.16
• 1995 4.30
• 1996 11.50
• 1997 13.94
• 1998 18.50
• 1999 32.90 (16 mths.)
• 2000 17.64
• 2001 20.43
• 2002 22.69
• 2003 45.00
• 2004 60.00
• 2005 62.00

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COMPANY HISTORY

• The company started encountering cash flow
  problems in 1998 and unsuccessfully approached
  various banking institutions, including foreign
  banks, for assistance.
• It was eventually realised that the company
  required a new equity partner to provide it with
  the necessary finance.
• On 1 October 2000 SA Five Holdings (Pty) Ltd
  acquired a 51 stake in UAD and provided the
  company with a R15 million banking and L/C
  facility.
• To date we have made a remarkable come back!

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SA FIVE BACKGROUND

• Has been in existence since 1988
• The Mission and Values of the Group are
  synonymous to those of UAD
• Its international shareholder provides ready
  access to state of the art techniques and
  technologies
• The Group has interests in the fields of
  engineering, major plumbing installations,
  structural steel fabrication and air handler
  manufacture

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COMPANY ORGANOGRAM
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UAD ORGANOGRAM
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BRANCHES
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WHAT BUSINESS ARE WE IN ?

• SELLING UNITARY AIRCONDITIONERS
• DISTRIBUTION OF THE ABOVE TRANE EQUIPMENT IN THE
  SOUTH AFRICAN SUB-SAHARA AFRICA REGION
• PROVIDING TECHNICAL SUPPORT TO OUR CUSTOMERS
• SELLING SPARES FOR TRANE EQUIPMENT

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WHAT IS THE SIZE OF THE MARKET ?

• The Unitary market in S.A. is worth - R 660
  million ( US 82 million)
• We presently have a 5 share of this market
• In other countries in the world TRANE has a 10 -
  15 share of the relevant Unitary air
  conditioning market.
• There is definite potential for us to grow our
  market

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MAJOR COMPETITORS NAME
of MARKET

• L G 15
• YORK 9
• DAIKIN 9
• CARRIER 8
• SAMSUNG 8
• McQUAY 7.5
• PANASONIC 7.5
• U.A.D. 5
• GENERAL / GOODMAN 4
• MITSUBISHI 4
• OTHER (- 50) 23
• 100

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Marketing Strategy

• Various avenues of Marketing have been tried and
  tested within our industry. We have found the
  most successful of these is to build long-term
  personal relationships with customers that is
  based on trust.
• The Marketing Strategy that we use is as follows
• Plan and maintain a successful calling cycle to
• end users
• contractors
• developers
• consultants
• large corporate companies
• Establish UAD as a reliable supplier with a
  superior product by also
• keeping a small stock holding of fast moving
  items at all our branches
• advising customers of lead times and Head Office
  policy and procedures to avoid delays.

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Marketing Strategy (cont.)

• supplying on hand technical support at all times
• informing customers of the Trane Warranties on
  relevant products.
• Build long term personal relationship with
  customers which requires
• maintaining regular contact with customers
• informing customers timeously of new changes and
  technologies within our product range
  and business
• offering quarterly incentive plans
• holding regular entertainment events and functions

To market our product with the End User is a
new concept of Marketing that we will employ.
This type of Marketing is aimed at securing
contacts directly with the end user within large
projects. The end user will be advised of the
long term investment in their air-conditioning
i.e. they will be assisted with decisions
regarding specifications, installations and
product. They will be made aware of warranties
applied to the purchase as well as the importance
of maintaining their airconditioning units.
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OUR STRENGTHS

• QUALITY We have a superior range of Trane
  products, some of which offers a ten year
  warranty on the compressor and spine fin coils
• DELIVERY We deliver from our warehouse in
  Durban via road and air networks in South Africa
• LOCATION We receive the imported units at our
  Durban harbour. There are good road and air
  networks from Durban to the rest of S.A.
• TECHNICAL We regard our technical team to have
  the best experience and skill (over 100 years
  combined experience between 4 people) of any
  other airconditioning distributor in S.A.. SA
  Five has also greatly strengthened our expertise.

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OUR CAPABILITIES

• TECHNICAL the technical team has an excellent
  knowledge of our products. Training will also be
  given to staff and clients
• SALES our sales team has the potential to
  double our present projected sales
• FINANCES our present fixed overhead structure
  will only require a marginal increase to handle
  the forecasted increased sales
• FACILITIES the excellent facilities are
  adequate to handle a doubling in sales
• TRAINING agents and contractors will receive
  training from our technical staff

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ACHIEVEMENTS

• MARKET SHARE
• ESTABLISH NEW CORPORATE CLIENTELE
• SYNERGIES WITH SHAREHOLDER
• TECHNICAL STAFF

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DISAPPOINTMENTS

• IRRESPONSIBLE COMPETITION
• UNSATISFACTORY CONTRACTING
• RAND / US EXCHANGE RATE

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FUTURE GOALS

• MARKET SHARE 10 (double of present)
• SPARES OUTLETS in identified regions
• CASH FLUSH minimal / no bank overdraft
• TRANE DUBAI all stock purchases on
  open account
• QUALITY ISO 9002 - maintain excellent
  audit results
• STAFF committed and dedicated

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TCL

• UAD have successfully secured the TCL agency for
  the Sub-Saharan territory.
• UAD will import approximately 25,000 sets of
  equipment per annum.
• We have a full supply of spares and a technical
  team for continuous support and back-up.

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THE ONLY AIR CONDITIONING DISTRIBUTOR ABLE TO
OFFER A COMPREHENSIVE 10 YEAR WARRANTY
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