Reunert Limited · JSE:RLO
Reunert — Investor Presentation (August 2007)
19 slides from Reunert's investor presentation, Aug 23, 2007
Slide 1: Chris Oliver – Useless Without Us
Chris Oliver 23 August 2007 Useless Without Us MAKE SURE YOU'VE GOT THE BEST INSIDE YOUR HOME
Slide 2: Agenda
AGENDA • Overview of CBI • Market Driving Forces • Strategic Issues
Slide 3: Overview of CBI
OVERVIEW OF CBI
Slide 4: Johannesburg
Johannesburg
Slide 5: Assembly Plants
Hyqwa Thaboqwa Lesotho 1 Hylesedi Lesotho 2 Assembly Plants
Slide 6: Product/Market Mix
Motor Control x x Gear Automation x x Equipment Traded Wiring Accessories x x Surge Protection PRODUCT/MARKET MIX x x x Devices Ready/Distribution x Boards Electricity x x x x Metering Manufactured Earth Leakage x x x x x x Protection Moulded Case x x x x Circuit Breakers Miniature x x x x x x Circu
Slide 7: Sales Mix
SALES MIX 2003 Base = 100 180 160 140 Residential 120 Com /Ind 100 Mining 80 Industrial Controls Utility 60 Export 40 20 0 2004 2005 2006
Slide 8: Export/Total Sales
EXPORT/TOTAL SALES Ratio 30% 20% 10% 0% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
Slide 9: Export Sales by Region
Export Sales by Region 100% 80% Australia % 60% Far East North America 40% Europe Africa 20% 0% 2004 2005 2006
Slide 10: Market Driving Forces
MARKET DRIVING FORCES
Slide 11: Residential
RESIDENTIAL • Building plans completed • Building plans passed • Other suppliers are Clipsal, Schneider, Crabtree, ABB, Chint, MES, MCE etc. • Low cost of Chinese products • Suppliers of Chinese products in major centres • Banks become major players in low cost housing • CBI products are widely avai
Slide 12: Building Plans Completed
R mio BUILDING PLANS COMPLETED Seasonally Adjusted at constant 2000 prices 1800 1600 1400 1200 1000 Residential 800 Buildings 600 Non-Residential Buildings 400 Additions and 200 Alterations 0 J F M A M J J A S O N D J F M A M 06 07
Slide 13: Building Plans Passed
R m io BUILDING PLANS PASSED Seasonally Adjusted at constant 2000 prices 3000 2500 2000 Residential 1500 Buildings Non-Residential Buildings 1000 Additions and Alterations 500 0 J F M A M J J A S O N D J F M A M 06 07
Slide 14: Market Trends Residential
MARKET TRENDS RESIDENTIAL Index (2001 =100) 300 250 200 Sales (ppd) 150 Building Plans 100 50 2001 2002 2003 2004 2005 2006 O N D J 07 F M A M J J
Slide 15: Industrial and Mining
INDUSTRIAL and MINING • Commodity prices lower but still high • Project commitment remains strong • Skills shortages for large projects • Capacity of local suppliers to supply turn key projects • Imports of capital equipment and associated circuit breakers
Slide 16: Utilities
UTILITIES • Slowdown in electrification due to electricity supply capacity limitations • Erratic nature of metering orders and impact on industry • Survival pricing models of metering competitors • Eskom capital projects outstrips local capacity • Declared preference for turn-key projects • LV Circu
Slide 17: Export
EXPORT • Capital constraints limits export business consistency in Africa • Industrialised countries moving their manufacturing to low labour cost areas i.e. China, Vietnam, India etc. • Telecom, railway signalling and distribution protection remains the main market segments
Slide 18: Strategic Issues
STRATEGIC ISSUES • Lower cost of manufacturing by – Rationalising product range – Reducing input costs • Grow sales by – Strengthening distribution channel – More intelligent marketing – By insuring adequate supply of product
Slide 19: Q's & A's
electric low voltage Q’s & A’s