Reunert Limited · JSE:RLO
Reunert — Investor Day (June 2022)
50 slides from Reunert's investor day presentation, Jun 28, 2022
Slide 1: Renewable Energy Eco System Investor Day
RENEWABLE REUNERT ENERGY INVESTOR ECO SYSTEM DAY Terry Lawrenson Segment Head RENEWABLE ENERGY INFORMATION AND COMMUNICATION TECHNOLOGY
Slide 2: Overview of the Day
! OVERVIEW OF THE DAY Item 1 Introduction to Reunert 2 Reunert’s Diversification Strategy 3 Renewable Energy 3.1 Introducing the Renewable Energy Ecosystem 3.2 Reunert’s unique Renewable Energy Value offering 3.3 Value of Reunert’s Renewable Energy offering 3.4 Demonstrations 4 ICT Segment 4.1 ICT S
Slide 3: Renewable Energy Management Team
" RENEWABLE ENERGY MANAGEMENT TEAM TERRY LAWRENSON NICO DE BRUYN JAMES VERSTER Expertise Expertise Expertise ► BSc Electrical Eng., Hons (BSc) Psychology, Mphil ► CA(SA) ► BSc. Engineering, MSc Engineering, MBA Applied Ethics, GCC (Mines & Works) ► Financial Manager, Reutech Solutions: 2009 – 2015 ►
Slide 4: Renewable Energy Management Team
# RENEWABLE ENERGY MANAGEMENT TEAM ROGER HISLOP MARY JERVIS Expertise Expertise ► BSc Engineering ► Pr. Eng. (Engineer) ► Public affairs: ► Project Engineer, Eskom 2011-2014 − Executive committee member – Wireless Access Providers ► Terra Firma Solutions Engineering team responsible for energy, elec
Slide 5: Renewable Energy Eco System Overview
OVERVIEW RENEWABLE ENERGY ECO SYSTEM OVERVIEW Alan Terry Alan Dickson Lawrenson Dickson Group Chief Segment Group Chief ExecutiveOfficer Head Executive Officer
Slide 6: Reunert Overview
REUNERT OVERVIEW KEY FACTS ► Established in 1888 Market Operating Revenue** ► Listedon the JSE since 1948 in the electronic and electrical Cap* Profit** equipment sector R8,1bn R9,6bn R1,1bn ► Corporate headquarters in Woodmead, South Africa ► Reunert comprises a diversified portfolio of strong busi
Slide 7: Reunert as a Group
REUNERT AS A GROUP Group Three Segments Clusters POWER CABLES ELECTRICAL ENGINEERING CIRCUIT BREAKERS BUSINESS COMMUNICATION TOTAL WORKSPACE PROVIDER ICT RENTAL-BASED FINANCE REUNERT LIMITED SOLUTIONS AND SYSTEMS INTEGRATION SECURE COMMUNICATIONS FUZES APPLIED ELECTRONICS RADARS LOGISTICS RENEWABLE
Slide 8: Reunert's Strategy Addresses Our Material Matters
REUNERT’S STRATEGY ADDRESSES OUR MATERIAL MATTERS !"#$%#&'(&)"# ')*+ !"#$%&$'()(*+(, Growing competition Late life-cycle products ,-"./&"0/-)#% Margin pressures 1'".&2 8(%1'/947./0$ -%0+37%*$5/6(:$;/0+($ !"#$%&'"()"*+,-./0"1&2(13&'"1&4&)5& -./0($1'%234$5+67*(66(6 :7)('67&7./37%* %&&('7*16 $
Slide 9: Video: Introducing Renewable Energy Eco System
RENEWABLE VIDEO: ENERGY ECO INTRODUCING SYSTEM ENERGY RENEWABLE Terry Lawrenson Segment Head
Slide 10: Renewable Energy Ecosystem
RENEWABLE ENERGY ECOSYSTEM Terry Lawrenson Segment Head
Slide 11: The Renewable Energy Eco-System
11 Energy Trading Marketplace (Platform) Grid-Interactive Buildings (SEM Platform) The Renewable Energy “Eco-System”: • Embedded generation • Storage • Load control • Enabling IoT, software and data (“Platforms”) • Wheeling across the Grid • Financial instruments (RECs, Carbon, etc)
Slide 12: Our Unique Offering Across the Renewable Energy Ecosystem
OUR UNIQUE OFFERING ACROSS THE RENEWABLE ENERGY ECOSYSTEM Utility Scale (REIPP)1 Electrical Load Control and Automation Engineer, Procure and Construct (EPC) Build Own Operate and Maintain (BOO) Assets Embedded Generation Backup Off Grid Storage Grid Stabilisation Arbitrage & Peak Shaving 1) Reunert
Slide 13: Key Market Concepts
KEY MARKET CONCEPTS Terry Lawrenson Segment Head
Slide 14: Time of Use and Maximum Demand
TIME OF USE AND MAXIMUM DEMAND Maximum Maximum demand means the highest demand average demand measured in kVA at the point of supply during a 30-minute integrating period in a billing month Time of use (TOU) tariff is a tariff with energy Typical Electricity cost c/kWh on Megaflex* Tariff for custom
Slide 15: What Is Embedded Solar Generation
WHAT IS EMBEDDED SOLAR GENERATION Grid Supplied Electricity Generation of electricity on-site Installed “behind primarily for self- the meter” consumption Bulk Meter Reduces grid electrical usage Reduces a site’s and associated electricity bill carbon emissions Rooftop/Ground Solar Reduced Bill
Slide 16: Current Renewable Energy Market and Future Growth Prospects
CURRENT RENEWABLE ENERGY MARKET AND FUTURE GROWTH PROSPECTS Terry Lawrenson Segment Head
Slide 17: Megatrends
MEGATRENDS Eskom and municipality’s energy costs will keep accelerating above inflation Electricity is the best vector to decarbonisation Climate change is a reality Everyone wants automation and intelligence The world is moving to "X"-as-a-service
Slide 18: Rapid Growing Embedded Generation Market in South Africa and into Africa
RAPID GROWING EMBEDDED GENERATION MARKET IN SOUTH AFRICA AND INTO AFRICA The commercial and industrial Currently 1.15 GWp of installed sector accounts for about 70% of solar PV rooftop systems in new rooftop solar PV installations South Africa nationally The total yearly available market to grow up
Slide 19: Rapid Growing Embedded Generation Market in South Africa and into Africa
RAPID GROWING EMBEDDED GENERATION MARKET IN SOUTH AFRICA AND INTO AFRICA
Slide 20: Load Control and Automation
LOAD CONTROL AND AUTOMATION The addressable market in the South African market for Smart Energy Management solutions are: NUMBER OF ASTUTE DEVICES ► Sectional Title residential: 28,325 29 500 3 500 ► Medium/Large power users < 100kVA: 41,200 26 500 3 000 ► Key users > 100kVA: 1,545 23 500 2 500 20 5
Slide 21: How Reunert Addresses the Market
HOW REUNERT ADDRESSES THE MARKET
Slide 22: Terra Firma Solutions (TFS) and Lumika
TERRA FIRMA SOLUTIONS(TFS) AND LUMIKA Mary Jervis Chief Technical Officer, TFS
Slide 23: Full Service Offering
FULL SERVICE OFFERING Build, Outright own, purchase operate solutions Known as the EPC solutions Known as the BOO model model Design, build and Design, build, finance operate tbe solar plant and operate the solar for clients for our clients Design, procure, build and Focus on the commercial and oper
Slide 24: Key Milestones, Achievements & Expertise
KEY MILESTONES, ACHIEVEMENTS & EXPERTISE Turnkey supply of over 200MW of C&I Solar à Project Development The largest in South Africa • Highly experience team of Solar Project Developers to identify, commercialise and negotiate EPC and BOO projects Designed, Built and Operated the largest rooftop sol
Slide 25: The Need in Africa and Our Response
THE NEED IN AFRICA AND OUR RESPONSE Utility- Diesel scale TFS & Grid Power Generators Lumika Reliable projects electricity supply Long term PPA; Supply chain solution tailored Unstable issues per client Affordable electricity The Attractive tariff for consumer; Need Green Grid tariffs Expensive runn
Slide 26: Our Goal in Africa
OUR GOAL IN AFRICA ► To build the largest Commercial and Industrial Solar Developer, EPC and asset owner in Africa ► Create a scalable and repeatable structure for simple entry into new territories ► To remain agile in decision making and light weight Develop, Scalable Build and Entry into in terms
Slide 27: Blue Nova
BLUE NOVA James Verster CEO BLUE NOVA energy Drenewasie®) ENERGY
Slide 28: Energy Storage Market Overview
ENERGY STORAGE MARKET OVERVIEW ► South Africa's battery energy storage project pipeline is expected to grow to about R53 billion over the next three years, making the country one of the largest users of such systems globally (Engineering News, Sep 2021) ► Market sectors associated with energy storag
Slide 29: What Differentiates Blue Nova
WHAT DIFFERENTIATES BLUE NOVA • Systems are unique in that it can deliver high power under high current allowing them to be safely discharged within 1 hour High Power, High Current • Modular design of our HV systems allowing for scalability and solutions scoped around specific customers needs Flexib
Slide 30: Understanding Key Storage Markets
UNDERSTANDING KEY STORAGE MARKETS 1. Backup / Standby: on-demand provision of stored energy during load shedding and grid failures ► Device that provides instant, uninterruptible power, in the event of an unplanned power outage ► Automatically kicks into power supply mode during a power outage ► Wil
Slide 31: Understanding Key Storage Markets
UNDERSTANDING KEY STORAGE MARKETS 3. Self-consumption: off-grid / partially off-grid applications ► Maximizes the use of renewable power sources ► Stores excess renewable energy in a battery to be available when the sun sets, or the wind stops blowing ► Typically connected to the grid but configured
Slide 32: Understanding Key Storage Markets
UNDERSTANDING KEY STORAGE MARKETS 4. Grid stabilisation ► In an ideal world the power produced by the grid operator/s and the power used by industry and other consumers are perfectly matched ► This is not the case at all. PV and wind power sources continuously fluctuate which with the PV sources and
Slide 33: Our Product Offering
OUR PRODUCT OFFERING Backup / Standby MPS CPS RacPower HC Series (Mobile Power Series) (Compact Power (High Capacity/High Station) Current) AND Load shifting & Self-consumption AND Grid Stabilisation BMAC BR HV Series iESS (Battery Management (Battery Rack) (High Voltage) (intelligent Energy and Con
Slide 34: Key Milestones
KEY MILESTONES • Timbila Nature Reserve – Namibia • Lodge and residential units • 250 kW – 975kWh • Off Grid • Integrated with – Generator, Integration PV string inverters • Generating power at less than R2 for 15years
Slide 35: Key Milestones
KEY MILESTONES • Lynas Australia export • Won against Chinese, European and US’ suppliers • 1.5 MW – 1.6MWh • Standby power • 1 hr discharge • Paarl Mall (2nd installation for Growthpoint) • 1.5 MW – 4.5 MWh • Largest lithium-Ion BESS in South Africa • Load shifting > 500 properties Selected based o
Slide 36: Smart Energy Management
SMART ENERGY MANAGEMENT Roger Hislop Executive – Smart Energy
Slide 37: Shape the Curve, Shift the Curve or Shed the Demand to Flatten the Curve
SHAPE THE CURVE, SHIFT THE CURVE OR SHED THE DEMAND TO FLATTEN THE CURVE If you have smart load control and measurement devices, you know what’s being used and you can turn it off and on. Maximum demand User definable rules and automations to choose penalty how to shed, shift and reduce loads. ► Sav
Slide 38: SEM (Smart Energy Management)
SEM (SMART ENERGY MANAGEMENT) Intelligent low voltage network for buildings ► Intelligent devices to be embedded in the DB and wiring circuits ► Devices that measure, communicate and can be controlled ► Enabling industrial/commercial software and cloud services to optimize the user load profile and
Slide 39: What Differentiates SEM from the Rest of the Smart and Automation Market
WHAT DIFFERENTIATES SEM FROM THE REST OF THE “SMART AND AUTOMATION” MARKET CURRENT MARKET OFFERINGS Consumer IoT Tech “Smart Building” Technology (Commercial) ► Very low cost … but often poor quality ► Building management systems prohibitively expensive ► Difficult to integrate with other systems (l
Slide 40: How Reunert Values Its Renewable Business
HOW REUNERT VALUES ITS RENEWABLE BUSINESS Nico de Bruyn Chief Finance and Business Improvement Officer
Slide 41: Renewable Energy Cluster
RENEWABLE ENERGY CLUSTER Reunert's’ assets access multiple facets of the renewable energy value chain and effectively creates a vertically integrated business through: 1. Project and Product Business (EPC & storage) ► Engineering, Procurement and Construction (EPC) of solar plants for diverse off ta
Slide 42: Key Characteristics of the Two Business Offerings
KEY CHARACTERISTICS OF THE TWO BUSINESS OFFERINGS Focused industries and Reputable customers Key relationships markets Project and product business Investment and annuity business Long-term Investment Low investment – and returns Upfront capital Repeat business “Capital light” Investment (10 to 25 y
Slide 43: Our Capability to Deliver Sustainable Short- and Long-Term Returns
OUR CAPABILITY TO DELIVER SUSTAINABLE SHORT- AND LONG- TERM RETURNS Delivering attractive, environmentally conscious, Cost efficient short- and long-term sustainable Contributing to energy Promoting Africa’s green solutions to our Creating green returns to our investors clean energy energy customers
Slide 44: Reunert Renewables Investment Proposition
REUNERT RENEWABLES| INVESTMENT PROPOSITION Business Investment Gearing Return Benefits How we value it* required characteristics Project and product Short-term Geared at More immediate Quick capital turn around EBITDA (6x – 8x) multiple business working capital Group level profits and cash flow on s
Slide 45: Reunert's View of the Future
REUNERTS VIEW OF THE FUTURE Terry Lawrenson
Slide 46: Probable Ecosystem Convergence in the Future
PROBABLE ECOSYSTEM| CONVERGENCE IN THE FUTURE RS-$T$O4((07*1$P0/3&%'= -BC$D E%==('.7/0FG*:+63'7/0 E'(/3($7*.'(=(*3/0$./9/.73Q$5Q$ <%=($>+3%=/37%* H;$0%/:$64(::7*1I$=/A7=+=$ (A9/*:7*1$34($(A7637*1$7*63/00(:$ ?%*($@ (A9/*:7*1$34($'/*1($ :(=/*:$=/*/1(=(*3$J5700$ /*:$-BC$5/6(U$$O4((0F3'/:($ /*:$(A90%'7*
Slide 47: Live Demo: Reunert's View of the Future
REUNERTS LIVE DEMOVIEW OF OF THE FUTURE COPPER Terry Lawrenson Mary Jervis
Slide 48: Blue Nova Remote Monitor & Control
BLUE NOVA REMOTE MONITOR & CONTROL
Slide 49: Live Demo: Smart Energy Management
REUNERTS LIVE LIVE DEMO: DEMOVIEW OFENERGY SMART OF THE FUTURE COPPER MANAGEMENT Terry Lawrenson Roger Mary Hislop Jervis
Slide 50: Q&A Key Upcoming Dates
Q&A Q&A Key upcoming dates > Please type your questions on the webcast portal > Financial year end 30 September 2022 > Kindly email Karen Smith at karens@reunert.co.za > Full-year results 25 November 2022 should you wish to have a one-on-one call with the > JP Morgan Conference 6 – 8 December 2022 m