Reunert Limited · JSE:RLO
Reunert — H1 2008 Earnings Presentation
13 slides from Reunert's earnings presentation, May 14, 2008
Slide 1: Interim results for the six months ended 31 March 2008
For the six months ended 31 March 2008 14 May 2008 1
Slide 2: Group businesses and operating environment
CBi-electric Nashua Reutech NSN Investment Circuit breakers Copiers Radio comms Mobile & fixed wire Automation Printers Electronic Fuzes telecommunications Motor Control Consumables Air weapons systems Wiring accessories Asset Finance Radars Transformers Presentation systems Mining surveilance Energ
Slide 3: Financial highlights and income statement
March 08 % change Revenue R5 bn 9% Normalised headline earnings per share 277,5 cents 7% Interim cash dividend per share 78 cents 7% Operating profit (NSN in) R729 m 20% Operating profit (NSN out) R643 m 6% Other income R90 m of which R86 million is NSN Cash at end of period R294 m EBITDA as % of re
Slide 4: Balance sheet
R million Note 2008 2007 Total non-current assets 1 2 411 1 163 Finance company accounts receivable - 1 600 Current assets 3 207 2 285 Inventory & contracts 2 962 787 Accounts receivable 3 1 951 1 425 Cash 294 73 Total assets 5 618 5 048 Shareholders equity 4 3 126 1 871 Minority interest 16 31 Non-
Slide 5: Cash flow and capital expenditure
R million 2008 2007 EBITDA 769 643 Operating activities Increase in net working capital (292) (411) Finco accounts receivable - (197) Increase in other working capital (292) (214) Cash generated from operations 477 232 Net interest and dividend income 31 27 Tax paid (231) (340) Dividends paid (430)
Slide 6: Revenue and operating profit contribution by segment
Revenue HY08 Operating Profit HY08 140%↑ (19%)↓ R 282m 296%↑ R 86m 5% 11% R 65m 9%↑ R 1 750m 9% R 289m 10%↑ 8%↑ 39% 34% R 3 126m 61% (5%)↓ R 310m 41% CBI-electric Nashua Reutech NSN 6100 5900 256 5700 80 80 5500 371 R million 371 5300 135 5950 5100 4900 5108 5108 5108 5108 5108 4700 4500 2007 CBI Na
Slide 7: CBi-electric results
R million HY08 FY07 HY07 FY06 HY06 FY05 Revenue 1 750 3 219# 1 615 2 574 1 149 1 987 Operating profit 289 519* 231* 552 223 333 Profit margin 17% 16% 14% 22% 19% 22% #Excludes extraordinary revenue of R96m *Excludes surplus of R35m on sale of non-current assets to the ATC/Aberdare joint venture 31 M
Slide 8: CBi-electric operational update
Growth in both revenue and operating profit could have been better Construction/Commissioning close to being completed Continuing labour unrest ◦ Resolved in February ACSR ◦ Fully commissioned and rolling ◦ Awaiting orders from Eskom Proportionally consolidated 50% contribution compared
Slide 9: Nashua results
R million HY08 FY07 HY07 FY06 HY06 FY05 Revenue 3 126 5 816 2 837 5 344 2 632 4 725 Operating profit 310 627* 277* 689 297 582 Profit margin 10% 11% 10% 13% 11% 12% * Excludes extraordinary item of R48 million for finance book 31 March % change in % Change in Revenue Operating Profit Office systems
Slide 10: Nashua mobile connections and metrics
Good growth in revenue Rapid weakening of the rand in early stages affected margins negatively Majority owned franchises contributed close to 50% of sales ◦ Tshwane, Port Elizabeth, West Rand, Kopano Sales expected to slow down March 08 March 07 Growth % past year Contract connections for ye
Slide 11: Reutech results
R million HY08 FY07 HY07 FY06 HY06 FY05 Revenue 282 491 202 317 126 300 Operating profit 65 109 16 30 4 4 Profit margin 23% 22% 8% 10% 3% 1% ►The benefit of volume 31 March % change in % Change in Revenue Operating profit Fuzes 141% 2 324% Communications 67% 209% Radar Systems (7%) - Logistics (2%)
Slide 12: NSN investment
Relationship reviewed Global management approach Revenue driven agreement Commissions in stead of dividends Exit mechanism agreed ◦ December 2010 Maintaining its position Vodacom, Telkom and now Neotel 12
Slide 13: Prospects and contact
South African economy and sentiment ◦ decline in consumer demand ◦ higher inflation ◦ Eskom power outages ◦ interest rate increases ◦ hike in fuel prices The sub-prime crisis For the full year we should ◦ Is it over? achieve real earnings growth ◦ Will it hit SA ◦ Cost of funding Export prospe