Reunert Limited · JSE:RLO
Reunert — Investor Presentation (July 2008)
22 slides from Reunert's investor presentation, Jul 30, 2008
Slide 1: Investor Presentation – Koos Vorster
INVESTOR PRESENTATION 30 JULY 2008 Koos Vorster WORLD CLASS MANUFACTURER OF COPPER AND OPTICAL FIBRE COMMUNICATION CABLES AND CABLE ACCESSORIES
Slide 2: Agenda
AGENDA ➢ STRUCTURE AND SHAREHOLDING ➢ FACILITIES ➢ PRODUCT OVERVIEW ➢ MARKET ➢ GROWTH PROSPECTS ➢ QUESTIONS
Slide 3: Shareholding
SHAREHOLDING Allied Electronics Izingwe Powerhouse Corporation Aberdare Cable REUNERT Utilities LIMITED Limited Investments (Pty) Ltd (ALTRON) (Pty) Ltd 74,9% 25,1% 70% 30% ATC (Pty) Ltd Aberdare Cables (Pty) Ltd 50% CBI Electric: 50% Aberdare ATC Telecom Cables (Pty) Ltd Incorporating Lambda Cables
Slide 4: Facilities
FACILITIES BRITS FACILITY AREAS Site Area 12.2 ha Manufacturing 29,437 m² Copper Capacity 2,500,000 Kcm Fibre Capacity 1,200,000 Fkm ROSSLYN FACILITY AREAS Site Area 5,8 ha Factory 12,000 m² Data Capacity 72,000,000m
Slide 5: Copper Cable Product Range
COPPER CABLE PRODUCT RANGE COPPER CABLE TELECOMMUNICATION CABLE INDUSTRIAL CABLE • INDOOR • INSTRUMENTATION AND CONTROL • OUTDOOR (AERIAL & UNDERGROUND) • PILOT AND SIGNALING • DSLAM • DATA AND UTP • PCM • SPECIALISED, e.g. Leaky Feeder Coaxial • DROP WIRE • STEEL WIRE ARMOURED • UVG CABLE
Slide 6: Lambda Product Range
LAMBDA PRODUCT RANGE DATA UTP Cat 5e (solid and flex) FTP Cat 5e UTP Cat 6 (Solid & Flex) TELECOMS UP TO 50 PAIR MYLAR (SCREENED TELECOM) FIRE ALARM CABLE DOWN LINE WIRE (EXPLOSIVES MARKET) UVG INSTRUMENTATION CABLE
Slide 7: Optical Fibre Cable Product Range
OPTICAL FIBRE CABLE PRODUCT RANGE OPTICAL FIBRE CABLE INDOOR CABLE OUTDOOR / UNDERGROUND CABLE SPECIALISED/ INDUSTRIAL USE • TAIL CABLE • DUCT TYPE CABLES • INSTRUMENTATION • BREAKOUT CABLE • ARMOURED & RODENT PROTECTED • MINESHAFT • DISTRIBUTION CABLE • AERIAL CABLE (RURAL, SHORT, • FIELD DEPLOYABL
Slide 8: Cable Accessories Product Range
CABLE ACCESSORIES PRODUCT RANGE CABLE ACCESSORIES OPTICAL FIBRE UTP OPTICAL FIBRE AND OPTICAL FIBRE CABLE ASSEMBLIES CABLE COPPER CABLE CABLE SLACK ASSEMBLIES JOINT CLOSURES BINS
Slide 9: Customer Base Large and Diverse
CUSTOMER BASE TELECOM NETWORKS MINES PROCESS MARKET • FIXED LINE OPERATORS • TELKOM /NEOTEL • GOLD • PETROCHEMICAL • MOBILE OPERATORS • PLATINUM • PAPER AND PULP • MTN/VODACOM • DIAMOND • OTHER - INFRACO • COAL • EXPORTS LARGE AND DIVERSE CITY COUNCILS/METROS DATA MARKET MARKET BOTH • OEM’S LOCALLY
Slide 10: Market
MARKET ➢ The estimated market that CBI is targeting in South Africa is R 1.5bn Estimated Market Size per Estimated Market Size per Market Segment - R1.524bn per annum Market Segment - R1.524bn per annum Non Telco Fibre Cable 41% 40% Teleco Copper Cable 59% 60% ➢ Estimated Imported Cable into this ma
Slide 11: Market Breakdown – Telkom vs Non Telkom
MARKET BREAKDOWN- TELKOM VS NON TELKOM HISTORICAL TELKOM CURRENT OUTLOOK DEPENDENCE 2005/6 42% 24% 11% 16% 65% 42% TELKOM TELKOM NON TELKOM NON TELKOM EXPORT EXPORT BASE YEAR INDEX 100 OUTLOOK INDEX 200
Slide 12: Product Breakdown
PRODUCT BREAKDOWN HISTORICAL PRODUCT CURRENT OUTLOOK MIX 66% 80% 31% 17% 3% 3% Copper Fibre Access Copper Fibre Access
Slide 13: Typical Network Pre Technology Migration
TYPICAL NETWORK PRE TECHNOLOGY MIGRATION Central Office Local Exchange Residential Street cabinet Medium High Cu Pr Cable Cu Pr Cable Low Cu Pr Cable SME’s Coax Cu Cable / Corporate Microwave / Medium OFC Cu Pr Cable TRUNK Network LOCAL LOOP Network Central Office Rural
Slide 14: Typical Network Post Technology Migration
TYPICAL NETWORK POST TECHNOLOGY MIGRATION Central Office Local Exchange Residential Street cabinet OFC OFC xDSL Ready SME’s Cu Cable Corporate OFC WiMax WiMax National / Metro High Cu Theft Network ACCESS Network Central Office Rural
Slide 15: Market Growth Areas – Copper
MARKET GROWTH AREAS COPPER ➢ SOUTH AFRICA ➢ TELKOM SA – Remains major user - maintenance and ADSL ➢ ESKOM – R343bn Capex to 2013. De-mothballing and new power stations ➢ INSTRUMENTATION CABLE – Local MEGA PROJECTS on the horizon – SASOL4; PETRO SA ➢ RAIL NETWORK - Commuter and Freight ➢ GAUTRAIN ➢ E
Slide 16: Telkom Usage Copper
TELKOM USEAGE COPPER Kcm’s ‘1000 180 160 140 120 100 80 60 40 20 0 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8
Slide 17: Non Telco Copper Growth
NON TELECO COPPER GROWTH BASE YR 100 NON TELECO 450 400 350 300 250 200 150 100 50 0 2005/6 2006/7 2007/8 2008/9
Slide 18: Export Growth
EXPORT GROWTH BASE YR 100 EXPORTS 600 500 400 300 200 100 0 2004/5 2005/6 2006/7 2007/8 2008/9
Slide 19: Market Growth Areas – Fibre
MARKET GROWTH AREAS FIBRE ➢ SOUTH AFRICA ➢ TELKOM SA – Balance of 5yr CapexR13,3bn Deep Fibre Deployment → Access ➢ NEOTEL – Metro/Access → Long haul National ➢ MTN / VODACOM – Self Provisioning Long haul ➢ SARCC METRO RAIL – Modernise Comms Network [Copper to Fibre] ➢ EXPORT ➢ PROPOSED SUBMARINE CA
Slide 20: Fibre Market
FIBRE MARKET BASE YR 100 FIBRE VOLUME 450 400 350 300 250 200 150 100 50 0 2005/6 2006/7 2007/8 2008/9
Slide 21: Pan African Submarine Cables
Current / Build In-progress Pan African Submarine Cables England France Lisbon SEAMEWE Egypt India SAT-1 / SAT -2 Djibouti Senegal Malaysia / India 1 – Cote d’Ivoire 3 2 – Ghana 1 2 45 SEACOM 6 3 – Benin 4 – Nigeria Kenya Angola Tanzania 5 – Cameroon 6 – Gabon Mauritius SAFE SAT-3 / WASC Madagascar
Slide 22: Pan African Submarine Cables
Current / Build In-progress Pan African Submarine Cables AWCC EASSY