Slide 1: Unaudited Investor Presentation for the six months ended 31 March 2015
2014 UNAUDITED INVESTOR PRESENTATION for the six months ended 31 March 2015
Slide 2: Agenda
Agenda Overview – Alan Dickson, Chief Executive Officer Financial results – Lood de Jager, Acting Chief Financial Officer Segment discussion | Nashua – Mark Taylor Segment discussion | Reutech – Peter van der Bijl Segment discussion | CBI-electric – Alan Dickson Prospects – Alan Dickson © Copyright
Slide 3: The 6 months in review | challenges
The 6 months in review | challenges 1. The general South African operating environment continues to be extremely challenging • Slow macro-economic growth • Eskom challenges o Direct impact on our production capacity (ECN and CBI-electric); o Direct impact on sales, specifically CBI-electric; and o P
Slide 4: The 6 months in review | challenges (continued) and achievements
The 6 months in review | challenges (continued) 2. A number of industry specific challenges have also impacted this trading period • CBI-electric low voltage o Additional costs were incurred by the Solutions’ business in the closure of existing projects as a result of execution challenges. Further,
Slide 5: Financial results | salient features
Financial results | salient features 1H15 1H14 % change Continuing operations Revenue Rm 3 935,3 3 681,7 7 Operating profit Rm 502,8 477,2 5 Earnings per share (*) cents 245,7 200,9 22 HEPS (*) cents 242,1 201,3 20 NHEPS (*) cents 238,7 200,0 19 EBITDA % 14,2% 14,4% Operating profit % 12,8
Slide 6: Financial results | revenue
1H2015 FINANCIAL RESULTS Lood de Jager, Acting Chief Financial Officer 18 May 2015 Financial results | revenue 126 ( 64) ( 1) 192 3 935 Rm 3 682 2014 CBI-electric Nashua Reutech Other 2015 Reutech 10% Rm 1H15 1H14 % CBI-electric 1 965,4 1 774,1 11 CBI- Nashua electric Nashua 1 698,5 1 572,1 8 4
Slide 7: Financial results | operating profit
Financial results | operating profit 39 ( 43) 35 ( 6) 503 Rm 477 2014 CBI-electric Nashua Reutech Other 2015 Reutech 7% Rm 1H15 1H14 % CBI-electric 257,3 214,6 20 CBI- Nashua electric Nashua 243,7 204,4 19 45% 47% Reutech 35,3 77,9 55 © Copyright 2014 Reunert Limited 18 May 2015 10 UNAUDITED
Slide 8: Financial results | cash flow and efficiency indicators
Financial results | cash flow and efficiency indicators (29) Rm 73 1 910 2 031 166 (192) (47) 607 606 (455) EBITDA Improvement Interest, Taxation paid Capital Free cash Dividends Investing Financing Increase in in working dividends and expenditure flow paid activities activities cash capital other r
Slide 9: Nashua | salient features
Nashua Mark Taylor 18 May 2015 Nashua | salient features 500 90 TDV vs MFP and Printer MIF Continuing 450 m 1H15 1H14 % change 80 operations (Rm) 400 70 350 thousands 60 Revenue 1 698,5 1 572,1 8 millions 300 50 250 Total Clicks (left axis) 40 200 Multi-functional printers (right axis) 30 150 Oper
Slide 10: Nashua | overview and commentary
Nashua | overview Office Automation • Good recovery in unit sales volume, however, pressure on margin persists • Annuity revenues held up well, supported by growth in print volumes • Restructuring of ownership in larger franchises (North/Central, Durban, Cape Town, Tshwane) expected to drive future
Slide 11: Reutech
Reutech Peter van der Bijl 18 May 2015 UNAUDITED INVESTOR PRESENTATION for the six months ended 31 March 2015 31
Slide 12: Reutech | salient features and overview
Reutech | salient features Market sector Rm 1H15 1H14 % change Commercial 27% Revenue 423,7 487,7 13 SOEs 30% Operating profit 35,3 77,9 55 Defence 43% Profit margin 8,3% 16,0% Revenue distribution Local Exports 51% 49% © Copyright 2014 Reunert Limited 18 May 2015 17 Reutech | overview • Half-
Slide 13: Reutech | commentary
Reutech | commentary 1. Expansion of direct product sales into the Middle East and Asian markets • Three long-term supply contracts for Rogue have been successfully concluded • HF radios targeting new territories • Mining surveillance radar sales into large new markets is being actively pursued (Cen
Slide 14: CBI-electric | salient features
CBI-electric Alan Dickson 18 May 2015 CBI-electric | salient features % Factory capacity utilisation Rm 2015 2014 % change 100 80 60 Revenue 1 965,4 1 774,1 11% 40 20 0 Operating profit 257,3 214,6 20% Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Low voltag
Slide 15: CBI-electric | overview
CBI-electric | overview • South African volumes improved across the segment primarily driven by the power cable business • Market conditions are tenuous but CBI-electric’s relative market position is strong with: › Long-term supply contracts held by the power cable business have offset some of the r
Slide 16: CBI-electric | commentary
CBI-electric | commentary 1. Progress has been made into improving the revenue streams from international businesses • New product launch into Australia commencing 2nd half of FY2015 • The new rail and telecoms circuit breaker product sets for international OEMs are nearing completion 2. The value a
Slide 17: Prospects
Prospects 1. Deployment of sale proceeds • Strategic review is complete › Appropriate investment to enhance our existing portfolio of businesses is required for meaningful real growth › Stakeholder value will be increased by investment to: o Drive real growth in earnings o Reduce the current concent
Slide 18: Prospects | continued
Prospects | continued 2. Real growth expected • Next six months › Reutech expected to record a stronger 2nd half with the execution of new orders › Projected savings from cost optimisation initiatives within Nashua should result in improved results › Previously loss-making operations have been susta
Slide 19: Directors, registered office, transfer secretaries
DIRECTORS TS Munday (Chairman) *,T Abdool-Samad*, AE Dickson (Chief Executive), SD Jagoe*, S Martin*, M Moodley, TJ Motsohi*, NDB Orleyn**, SG Pretorius*, MAR Taylor, R Van Rooyen* * Independent non-executive; ** Non-executive REGISTERED OFFICE Lincoln Wood Office Park 6 – 10 Woodlands Drive Woodmea
Slide 20: www.reunert.co.za
www.reunert.co.za