Slide 1: Reunert Presents: Results for the Year Ended 30 September 2008
Reunert Presents RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2008
Slide 2: Group Structure
Group Structure CBI-electric Nashua Reutech Investments Energy cables Office systems Communications NSN (40%) Telecom cables Mobile Precision products Low voltage Electronics Radar systems Medium voltage Solutions
Slide 3: Segmental Analysis % Contribution
Segmental Analysis % Contribution to CBI-electric Nashua Reutech NSN
Slide 4: Income Statement for the year ended 30 September 2008
Income Statement for the year ended 30 September 2008 % R Millions Actual Change Actual 2008 on 2007 2007 TURNOVER 10 921.1 14 9 574.4 EBITDA less NSN commission 1 520.2 9 1 393.0 Depreciation (86.6) (17) (74.3) Operating Profit 1 433.6 9 1 318.7 Interest & Dividends 60.3 10 54.8 Profit before abnor
Slide 5: Balance Sheet as at 30 September 2008
Balance Sheet as at 30 September 2008 Sept Sept R Millions 2008 2007 EMPLOYMENT OF CAPITAL Fixed Assets 591.3 578.7 Goodwill & Investments 1 280.6 1 100.7 R C & C Finance debtors 1 274.8 - Deferred tax assets 32.0 37.9 Current Assets 3 620.3 2 631.2 Stock 979.7 915.1 Accounts receivable 1 520.3 1 38
Slide 6: Summarised Cash Flow Statement
Summarised Cash Flow Statement for the year ended September 2008 2007 (excl movements relating to finco) Rm Rm EBITDA 1 659.2 1 393.0 Dividend and interest income 147.2 200.8 1 806.4 1 593.8 Increase in inventory (48.6) (66.1) Increase in accounts receivable (337.9) (95.0) Decrease in accounts payab
Slide 7: Cash Dividends Per Share
| Cash Dividends Per Share 500 | 1,8 == 450 - 400 - Dividend £ 350 - 24 1,8 2,0 cover 5 300 - (times) o 250 1,7 Special 2 200 - 4,7 a Final a 150 — 19 15 @ Interim ° 18 19 100 — , opnl 0 tT TT —T —To —T | 8 8 s&s 8 8 § 8 8 8 8 Sf R R A A KR KR AR KR A REUNERT REUNERT LIMITED
Slide 8: Seven-year Performance
| Seven-year Performance Revenue Operating Profit 12 1600 40 1400 1200 1000 800 600 ee) oO (=) N REUNERT R billion oO NO aS [e>) foe) 2004 DT 2005 MET R million No’ oOo oO oOo oO Oo 2007 — 2002 2003 2006 2007 2008 2002 2003 2004 2005 2006 REUNERT LIMITED
Slide 9: Capital Expenditure
Capital Expenditure Rmillion 2008 2007 CBi-Electric: energy cables 30,8 49,6 CBi-Electric: telecom cables 7,8 5,5 CBi-Electric: low voltage 32,5 55,4 Nashua Office Automation 5,1 6,6 Nashua Electronics 11,4 4,0 Nashua Mobile 10,6 17,3 Reutech 18,1 9,4 Group services 0,8 1,2 117,1 149,0
Slide 10: Operational Review
OPERATIONAL REVIEW
Slide 11: CBI-electric
CBI-ELECTRIC R’million % Change FY2008 HY2008 FY2007 HY2007 Y-o-Y Revenue 19% 3 951.9 1 750.3 3 315.1 1 615.3 Operating Profit 22% 675.3 289.3 553.9 266.1 Profit margin 17% 17% 17% 16%
Slide 12: Energy Cables
Energy Cables • Revenue up 43% • Operating profit up 18% • Upgrading of facilities over past two years – Increased capacity – Increased efficiency – Workforce stabilised after industrial action FY07 • New product line operational FY08 – ACSR: Eskom 5 year contract (minimum 8 000 tons p.a.) • Strong
Slide 13: Energy Cables
Energy Cables • Cautious approach to Capex • XLPE, ACSR • Focused on areas with high barriers to entry • High tension cable, Related services • Wary of high copper price – Minimised stock • Initiative to improve efficiencies – Over consumption • Scrap • Realising potential capacity
Slide 14: Telecom Cables
Telecom Cables • Revenue down 19% • Operating profit down 18% • Telkom copper cable orders 43% lower – 42% of revenue • Significant increase in optical fibre cable – Telco’s: Neotel, Vodacom, MTN • Exports increase by 18% – 17% of total sales • Middle East: instrumentation cable • Africa – Local • I
Slide 15: Telecom Cables: Capacity and Certifications
Telecom Cables • Capacity – Aberdare factory in PE moved to Brits – Optical fibre cable: 1 000 km/month – Copper cable • Expansion of capacity in – Data cable – Types of certifications – Instrumentation cable – UL Listing – EC Verification – Soncap –Nigeria – ISO 9001:2001
Slide 16: Low-voltage Products
Low-voltage Products • Recovered from previous year – Revenue up 19% – Operating profit up 45% • Product lines rationalised & efficiencies improved – Moved to Lesotho – Automated tube assembly • Grew exports of CBEs • Countered Chinese imports • Australia turned after management changes • Moeller ac
Slide 17: Medium Voltage
Medium Voltage • 1st power transformers commissioned – (5x20 MVA) • Sales of R10 million • Order intake R30 million • Investment to date R6 million • Type approvals for : – Pole-, Mini Sub Transformers, 11kV Switch Gear
Slide 18: CBI-electric Prospects
CBI-electric Prospects • Low copper price • Weaker demand in general market • Strong demand for high tension cable • Strong demand for fibre cable • Exports uncertain
Slide 19: The Nashua Group
THE NASHUA GROUP R’million % Change FY2008 HY2008 FY2007 HY2007 Y-o-Y Revenue 11% 6 445,2 3 125,8 5 816,3 2 837,4 Operating profit (3%) 652,8 310,2 674,7 325,1 Profit margin 10% 10% 12% 11%
Slide 20: Office Systems
Office Systems • Maintained volumes and 12% increase in revenue • Operating profit down 12% • (Including finance company) • Margins down – Rand/euro vs rand/yen • More than 40% of sales via majority owned outlets – Bought back Nashua West Rand franchise – FY07 bought back Tshwane & Port Elizabeth •
Slide 21: Nashua Finance & Quince Asset Rentals
Nashua Finance & Quince Asset Rentals • Eventful year • Bought back all shares – 100% owned 1 June 2008 • Securitisation curtailment following subprime crisis – R700 million book securitised – Remainder backed by Reunert – Finance book R1,9 billion • Will obtain external funding in due course • Incr
Slide 22: Nashua Mobile
Nashua Mobile • Business volumes maintained – Revenue up 15% – Operating profit up 8% • Product offering – Voice, data & internet services • Least cost routers – One of only two independent licensed service providers • Net connections down – Increased churn – debt related – Base cleaned up – New con
Slide 23: Nashua Mobile
Nashua Mobile Sep 08 Growth % Sep 07 past year Contract connections for year 132 210 (13%) 151 285 3G/HSDPA connections 28 782 5% 27 534 Total connections 160 992 (10%) 178 819 Closing contract base 663 787 (4%) 693 432 ARPU (average for period) 472 7% 443 Churn % 12.8 20% 10.7 Net bad debts as % of
Slide 24: Nashua Electronics
Nashua Electronics • Consumer electronics fiercely competitive – Revenue down 3% – Operating profit down 16% • Consumer items segmented • Direct indent • Compete not on price • Reduced volumes • Systems growth > 15% • Cresta store successful • E-Sales on the increase
Slide 25: Nashua Prospects
Nashua Prospects • Consumer spending expected to decline • Bad debts expected to increase • Overall capex to decline
Slide 26: Reutech
REUTECH R’million % Change FY2008 HY2008 FY2007 HY2007 Y-o-Y Revenue 27% 622.3 281.7 490.5 201.6 Operating Profit 25% 136.9 65.0 109.2 16.4 Profit margin 22% 23% 22% 8%
Slide 27: Reutech: Communications and Precision Products
Reutech Communications (RDI) • V/UHF radio’s • Designated strategic supplier to SANDF • Growing international sales of airborne radio • Long range projects in place Precision Products (Fuchs Electronics) • Secured excellent export orders • Fully loaded for 15 months+
Slide 28: Reutech: Radar Systems
Reutech Radar Systems • Nansen contract • Mining surveillance radars’ success – Adopted by major mining groups – Technically superior • Set-top-box – Converts analogue signal to digital – Market valued at R7 billion over 4 to 5 years – First production units supplied – Facilities in place
Slide 29: Reutech: Solutions (RDL Logistics)
Reutech Solutions (RDL Logistics) • Systems engineering and logistic support company • Expanded customer base from military to government, GSM service providers and mining industry • 1st Tetra orders received – Will provide 4000 tetra safe handsets – Installation of 11 tetra sites • includes towers
Slide 30: Reutech Prospects
Reutech Prospects • Short term excellent – Dollar based income • Long term exciting – Local programmes will kick in • International activity on the increase
Slide 31: Investments
INVESTMENTS REUNERT
Slide 32: Nokia Siemens Networks
Nokia Siemens Networks • Formerly Siemens Telecommunications • Hold 40% share in Nokia Siemens Networks South Africa • Siemens AG & Nokia merger – Effective 1 April 2007 – Compete with Ericsson, Alcatel-Lucent, Huawei • Revenue and operating profits flat • Margin pressure
Slide 33: Reunert Prospects
Reunert Prospects • Tough environment • Demand likely to decline • Exchange rate uncertainty • Any predictions are difficult Dividends • Maintained • Cover increased from 1.8 to 2 times • Further increase in cover may be necessary
Slide 34: For more information contact Reunert Investor Relations
For more information contact Carina de Klerk Reunert Investor Relations carina@reunert.co.za Tel + 27 11 517 9000 Mobile +27 83 631 5743 www.reunert.com www.reunert.co.za