Transcript Aberdare Cables Powertech Investors Relations Day – 9

Aberdare Cables
Powertech Investors Relations Day – 9 February 07
Hans Meiring, CEO
Aberdare History
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Founded in Port Elizabeth
Sold to NKF
Phillips incorporation
Aycliffe Cables acquisition
Copper telecommunication
Optical fibre plant
Contronics Cables acquisition
ASEA/Scottish Cables merger
Alcobre acquisition
Delta Cables acquisition
SA PVC acquisition (Voltex)
Lambda Cables acquisition
Aberdare Intelec founded
Cables de Comunicaciones
Aberdare Network Services established
Corning equity deal
Izingwe equity deal
Technology Integrated Solutions est.
Greenhills Distribution Centre est.
60TH Anniversary
ATC/Aberdare Joint Venture
- 1946
- 1956
- 1968
- 1969
- 1974
- 1981
- 1982
- 1985
- 1994
- 1995
- 1998
- 1998
- 1999
- 2000
- 2001
- 2001
- 2004
- 2006
- 2006
- 2006
- 2007
Aberdare facts and figures
 Major shareholders
:
Powertech & Izingwe
 Locations
:
RSA, Mozambique, Portugal & Spain
 Core Business
:
Cable & Solutions
 Sales Revenues
:
R 4 000 m / US $ 570 m
 Employees
:
2600
 Structure
:
Sales-led Functional Organization
 Manufacturing Facilities :
Pietermaritzburg, Gauteng, Pretoria, Port Elizabeth,
Maputo, Oporto, Zaragoza
 Asset Base
:
R 1225 m US $ 175 m
 Sales & Distribution
:
Port Elizabeth, Cape Town, Middelburg, Welkom,
Johannesburg, Nelspruit, East London, Bloemfontein,
Durban, Upington, Maputo, Oporto, Lisbon, Madrid,
Zaragoza, Hong Kong, Australia, Ghana, Namibia
 Technology Partners
:
Tyco/Raychem: Cable USA, Draka Cables
Aberdare Operating Structure
CJ Meiring
CEO
CC Woolard
Exec. Dir. Finance
J W Yuill
Exec. Dir. Technical
IT Millar
Exec. Dir. Human Capital
CJ Nichol
Exec. Dir. Sales
S Sibeko
Exec. Dir. Marketing
JO Kidson
Exec. Dir. Manufacturing
J V Victor
Dir. Value Chain Management
SP Jones
Dir. Strategic Projects
E Visser
MD. Technology Int. Services
Market Segments
Power
Telecom & Data
 Utilities
 Telkom SA
 ESKOM
 Transmission
 Distribution
 Generation
 Second Network Operator
 Mining Houses
 Private telecom networks
 Railways & Harbours
 General industry
 General industry
 IT & Surveillance installation markets
 Building & Construction
 GSM Networks
 Exports
 Exports
 Railways
 Mining Houses
Products
Power
Telecom & Data
 LV, MV & HV XLPE cable
 Copper telecom cable
 MV PILC cable
 OF telecom cable
 Elastomeric cable
 Industrial telecom cable
 PVC cable
 Instrumentation cable
 O/H conductors
 Railway Signaling cable
 Aerial bundle cable
 Data cable
 Fire Cables
 Fire cables
 Copper rod
 Pigtails & Patch cords
 Conform profiles
 Cable accessories
 Cable accessories
Aberdare Export Markets
Swaziland, Lesotho, Botswana, Namibia, Zimbabwe, Kenya, Malawi,
Ghana, Nigeria, DR Congo, Cameroon, Gabon, Guinea, Mali, Tanzania,
Sudan, Zanzibar, Mauritius, Seychelles, Mozambique, Zanzibar, Madagascar
Australia, China, Hong Kong, Macau, Singapore, Brunei, Sri Lanka,
Philippines
UAE, Kuwait, Qatar, Oman, Yemen, Bahrain
United Kingdom, Ireland, Scotland
Portugal, France, Belgium, Spain, Romania, Sweden
Brazil, Chile, Paraguay, Uruguay, Peru
USA, Canada
Market Shares – SA Power Cable Market
Other
13%
Mtec
11%
Aberdare
48%
28%
African
Aberdare
African
Mtec
Others
Aberdare Strategic Plan 2007 - 2010
Aberdare Group Strategic Intent
Drivers
Sustainable Value Creation and Growth through:
1. Customer Relationship
Management
2. Broad Based BEE
3. Technology Innovation
4. Talent Management
5. Operational & Functional
Excellence
6. Global Growth
7. Value Chain Optimisation
Aberdare 2010 and beyond strategic
plan concept summary …
“........FROM GOOD TO GREAT
towards 2010 and beyond......”
Consolidation / Rationalization
Telecoms Operations
 Aberdare/ATC Joint Venture completed January 2007
 Created World Class Company with the best
machinery and processes
 Ability to explore manufacturing opportunities in Africa with
spare plant from the Joint Venture
 Secured Technology Partners for new Joint Venture in
Europe
Cost Effectiveness
 Consolidation of Power Operations:
 Product/Process/Staff - functional rationalisation
(multi-site)
 Quality Improvements – BASEC ISO 9000 & ISO 14000
 Time utilisation improvements
 Stock control refined with SAP
 Process technology installed
 People skills upgraded in line with process improvements
Backward Integration
 Own manufacture of Copper Rod (Phase 1)
 State-of-the-art vertical casting lines
 12 000 tons/annum EC rod capacity
 Ability to cast specilialised copper alloys (Spoornet contact wire)
 Own Manufacture of Aluminium Rod (Phase 2)
 EC aluminium for general conductors
 Aluminium alloys for overhead conductors (Eskom)
 Continuous Metal Forming (Conform) (Phase 1)
 Solid profiled aluminium conductors
 Rectangular copper strip for transformer windings
 Polymer Compounding
 In-line polyolefin grafting (Phase 2)
 PVC insulating and sheathing compounds (Phase 1)
 Local mixing of PILC PIB impregnate (Phase 2)
Operational Excellence
 Lean Production:
 Cost of Production
 Measurements – Balanced Score Card
 Value Stream mapping
 Drives improvement activities
 Mission Directed Work Teams
 Mini Businesses
 Quality, Speed, Cost, Morale
 Ownership and accountability
 Complete Plant efficiency
 Time, Performance, Quality
 Kaizen activities
 Continuous improvement
Technology Integrated Solutions
Power Networks
Telecommunication Networks
 Cable accessories
 Physical fibre management systems
 Joints & terminations
 Connections & fittings
 Insulation & protection
 Substation
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O/H line protection
LV & MV Bus insulation
Insulators
Surge arrestors
 Electronics
 Cable harnesses
 Turnkey Solutions
 Spice closure organizers
 Heat shrink splice closures
 Watertight reusable closure systems
 Modular connection systems
 Fibre optic enclosures
 Terminal boxes
 Premise wiring components Raychem
 GSM system components
 OPGW line components
 Turnkey Solutions
Product Development
 Advanced Fire Cables
 Unarmoured flame retardant energy OCGT cables (Eskom)
 Zero-halogen flame-retardant RZA1-K cables (Spain)
 Railway Cables
 Track-side LV copper signalling cables for high speed trains (Spain)
 Track-side 3 kV energy cables for railway networks (Spain and SA)
 Anti-theft copper-clad-steel earth bonding cable (Spoornet & Eskom)
 Anti-theft contact wire (Spoornet)
 HV Cables
 66 kV XLPE-insulated cables
 Overhead Conductors
 Compacted ACSR transmission conductors
 All aluminium alloy (AAAC) transmission conductors
 High-temperature ACSR conductors
 3 kV aerial cables for deep rural electrification
B3 E2
Key Growth Drivers for Aberdare
2006 - 2010
 Infrastructure spend - Power, Telecommunications and
Transport
 Demand for Turnkey Solutions
 Support Service Delivery for upliftment in South Africa
 Building and Construction
 Industrial Expansion
 Mining Development
Aberdare Growth Base
“FROM GOOD TO GREAT”
 Aberdare Metallic Profiles Expansion
 Aberdare Power Cables Increased Capacity
 Establishment of Technology Integrated Services
 Expansion of Alcon Marepha Cables
 Aberdare / ATC Joint Venture
 International Expansion
 Acquisitions
 TECHNOLOGY INNOVATION ACROSS ALL OPERATIONS
 VALUE CHAIN OPTIMISATION ACROSS ALL OPERATIONS
 LEADERSHIP AND TALENT MANAGEMENT WITHIN THE GROUP
Aberdare Cables…..Geared for
Growth!
Thank you