Transcript Reunert Investors Presentation

INVESTOR PRESENTATION
30 JULY 2008
Koos Vorster
WORLD CLASS MANUFACTURER OF COPPER AND OPTICAL FIBRE
COMMUNICATION CABLES AND CABLE ACCESSORIES
AGENDA
 STRUCTURE AND SHAREHOLDING
 FACILITIES
 PRODUCT OVERVIEW
 MARKET
 GROWTH PROSPECTS
 QUESTIONS
SHAREHOLDING
Allied Electronics
Corporation
Limited
(ALTRON)
Powerhouse
Utilities
(Pty) Ltd
REUNERT
LIMITED
74,9%
30%
70%
25,1%
Aberdare Cables
(Pty) Ltd
ATC (Pty) Ltd
50%
Izingwe
Aberdare Cable
Investments
(Pty) Ltd
CBI Electric:
Aberdare ATC
Telecom Cables
(Pty) Ltd
Incorporating
Lambda Cables
EFFECTIVE BEE SHAREHOLDING 30.35%
50%
FACILITIES
BRITS FACILITY
AREAS
ROSSLYN FACILITY
AREAS
Site Area
5,8 ha
Factory
12,000 m²
Data Capacity
72,000,000m
Site Area
12.2 ha
Manufacturing
29,437 m²
Copper Capacity
2,500,000 Kcm
Fibre Capacity
1,200,000 Fkm
COPPER CABLE
PRODUCT RANGE
COPPER CABLE
TELECOMMUNICATION CABLE
INDUSTRIAL CABLE
• INDOOR
• INSTRUMENTATION AND CONTROL
• OUTDOOR (AERIAL & UNDERGROUND)
• PILOT AND SIGNALING
• DSLAM
• DATA AND UTP
• PCM
• SPECIALISED, e.g. Leaky Feeder Coaxial
• DROP WIRE
• STEEL WIRE ARMOURED
• UVG CABLE
LAMBDA
PRODUCT RANGE
DATA
UTP Cat 5e (solid and flex)
FTP Cat 5e
UTP Cat 6
(Solid & Flex)
TELECOMS UP TO 50 PAIR
MYLAR (SCREENED TELECOM)
FIRE ALARM CABLE
DOWN LINE WIRE (EXPLOSIVES MARKET)
UVG INSTRUMENTATION CABLE
OPTICAL FIBRE CABLE
PRODUCT RANGE
OPTICAL FIBRE CABLE
INDOOR CABLE
OUTDOOR / UNDERGROUND CABLE
SPECIALISED/
INDUSTRIAL USE
• TAIL CABLE
• DUCT TYPE CABLES
• INSTRUMENTATION
• BREAKOUT CABLE
• ARMOURED & RODENT PROTECTED
• MINESHAFT
• DISTRIBUTION CABLE
• AERIAL CABLE (RURAL, SHORT,
• FIELD DEPLOYABLE
MEDIUM AND LONG SPAN)
• COMPOSITE CABLES
CABLE ACCESSORIES
PRODUCT RANGE
CABLE ACCESSORIES
OPTICAL FIBRE
CABLE ASSEMBLIES
UTP
CABLE
ASSEMBLIES
OPTICAL FIBRE AND
COPPER CABLE
JOINT CLOSURES
OPTICAL FIBRE
CABLE SLACK
BINS
CUSTOMER BASE
TELECOM NETWORKS
• FIXED LINE OPERATORS
• TELKOM /NEOTEL
• MOBILE OPERATORS
• MTN/VODACOM
• OTHER - INFRACO
• EXPORTS
CITY COUNCILS/METROS
POWER UTILITIES
AND TRANSPORT
• ESKOM
• SPOORNET
• TRANSNET
• SARCC/METRO RAIL
MINES
PROCESS MARKET
• GOLD
• PLATINUM
• DIAMOND
• COAL
• PETROCHEMICAL
• PAPER AND PULP
LARGE AND
DIVERSE
MARKET BOTH
LOCALLY AND
ABROAD
DATA MARKET
• OEM’S
MIDDLE EAST
• PETROLEUM DEVELOPMENT OMAN
• SAUDI ARAMCO
MARKET

The estimated market that CBI is targeting in South Africa is R 1.5bn
Estimated Market Size per
Market Segment - R1.524bn per annum
Estimated Market Size per
Market Segment - R1.524bn per annum
Fibre Cable
40%
Non Telco
41%
Teleco
59%


Copper Cable
60%
Estimated Imported Cable into this market for the year 2007 was
 Copper cable
R 123mil
 Fibre Cable
R 54mil
Major export market for CBI is East and West Africa, SADEC and Middle East
MARKET BREAKDOWNTELKOM VS NON TELKOM
HISTORICAL TELKOM
DEPENDENCE
CURRENT OUTLOOK
2005/6
42%
24%
11%
16%
42%
65%
TELKOM
NON TELKOM
EXPORT
BASE YEAR INDEX 100
TELKOM
NON TELKOM
EXPORT
OUTLOOK INDEX 200
PRODUCT BREAKDOWN
HISTORICAL PRODUCT
MIX
CURRENT OUTLOOK
66%
80%
31%
17%
3%
Copper
Fibre
Access
3%
Copper
Fibre
Access
TYPICAL NETWORK
PRE TECHNOLOGY MIGRATION
Central Office
Residential
Local Exchange
Street cabinet
High Cu Pr Cable
Coax Cu Cable /
Microwave /
OFC
TRUNK Network
Central Office
Medium
Cu Pr Cable
Low Cu Pr Cable
SME’s
Corporate
Medium
Cu Pr Cable
LOCAL LOOP Network
Rural
TYPICAL NETWORK
POST TECHNOLOGY MIGRATION
Central Office
Residential
Local Exchange
Street cabinet
OFC
OFC
xDSL Ready
SME’s
Cu Cable
Corporate
OFC
WiMax
WiMax
National / Metro
Network
High Cu Theft
ACCESS Network
Central Office
Rural
MARKET GROWTH AREAS
COPPER
 SOUTH AFRICA

TELKOM SA – Remains major user - maintenance and ADSL

ESKOM – R343bn Capex to 2013. De-mothballing and new power stations

INSTRUMENTATION CABLE – Local MEGA PROJECTS on the horizon –
SASOL4; PETRO SA

RAIL NETWORK - Commuter and Freight

GAUTRAIN
 EXPORTS

MIDDLE EAST Petro - Chemical

MEED Report $59,2bn - under evaluation

AFRICA – Natural resource development Oil and Mining
TELKOM USEAGE COPPER
Kcm’s ‘1000
180
160
140
120
100
80
60
40
20
0
2002/3
2003/4
2004/5
2005/6
2006/7
2007/8
NON TELECO COPPER GROWTH
BASE YR 100
NON TELECO
450
400
350
300
250
200
150
100
50
0
2005/6
2006/7
2007/8
2008/9
EXPORT GROWTH
EXPORTS
BASE YR 100
600
500
400
300
200
100
0
2004/5
2005/6
2006/7
2007/8
2008/9
MARKET GROWTH AREAS
FIBRE
 SOUTH AFRICA

TELKOM SA – Balance of 5yr CapexR13,3bn
Deep Fibre Deployment  Access

NEOTEL – Metro/Access  Long haul National

MTN / VODACOM – Self Provisioning Long haul

SARCC METRO RAIL – Modernise Comms Network [Copper to Fibre]
 EXPORT

PROPOSED SUBMARINE CABLE NETWORKS WILL STIMULATE PAN AFRICAN
FIBRE DEMAND
FIBRE MARKET
BASE YR 100
FIBRE VOLUME
450
400
350
300
250
200
150
100
50
0
2005/6
2006/7
2007/8
2008/9
Current / Build In-progress
Pan African Submarine Cables
England
Lisbon
France
SEAMEWE
India
Egypt
SAT-1 / SAT -2
Djibouti
Senegal
1 – Cote d’Ivoire
2 – Ghana
3 – Benin
4 – Nigeria
5 – Cameroon
6 – Gabon
Malaysia / India
3
1 2 45
6
SEACOM
Kenya
Tanzania
Mauritius
Angola
SAT-3 / WASC
Madagascar
Mozambique
South Africa
SAFE
Current / Build In-progress
Pan African Submarine Cables
AWCC
EASSY