Reunert Limited · JSE:RLO
Reunert — Investor Presentation (September 2007)
15 slides from Reunert's investor presentation, Sep 26, 2007
Slide 1: Presentation to Reunert Investors
Presentation to Reunert Investors 26 September 2007 Martin Maddox
Slide 2: Products and Services
Products and Services Nashua Electronics Group Finance •Finance and accounting •Warehousing and logistics Manufacturing •Parts •Service networks Distribution •Distribution Creditors and debtors management Retail Manufacturing Panasonic Panasonic Futronic Nashua Systems Consumer •OA •Brown goods •Bro
Slide 3: Systems Business
Systems Business Five business units Common Key Success Factors 1. Office Automation & IT 1. Steep technological development 2. Telecommunications curve (Digital Product) 3. Presentation Systems 2. Direct dedicated distribution 4. CCVE Systems 3. BEE requirement 5. Broadcast Systems 4. Brand identit
Slide 4: Major hurdles facing Distributors in the Consumer Electronics Industry
Major hurdles facing Distributors in the Consumer Electronics Industry • Ease of entry to the market – Digital technology – Speed of R&D development – Transfer of technology • Potential Market Slow Down – Interest Rates – Credit Bill / Controls – Slow down in housing boom • Brand Premium Erosion • M
Slide 5: Unit Price Erosion
Unit Price Erosion 100 90 80 70 60 DVC 50 DSC 40 Plasma 30 LCD 20 10 0 2003 2004 2005 2006 2007
Slide 6: Major hurdles facing Distributors in the Consumer Electronics Industry
Major hurdles facing Distributors in the Consumer Electronics Industry • Ease of entry to the market – Digital technology – Speed of R&D development – Transfer of technology • Potential Market Slow Down – Interest Rates – Credit Bill / Controls – Slow down in housing boom • Brand Premium Erosion • M
Slide 7: Consolidation of key accounts
Consolidation of key accounts 45 40 40 Key Accounts 35 30 30 J D Group Lewis Stores 25 O K Furniture/Shoprite 20 20 Massmart Ellerine Holdings 15 Metcash 12 10 5 ? Pick ‘n Pay Iser Group Furnex Group 0 Spar Group Appliance 1980 1990 2000 Current 2010 Shaw Group No. of Key Accounts
Slide 8: Consumer Electronics Industry
Consumer Electronics Industry Industry Margin Industry Power Before 2005 2010 Before 2005 2010 2000 and 2000 and beyond beyond N/A Low +20% Designer/ R&D software Low +20% +10% Comp. Manufact. +20% <5% Very Prod. Low Manufact / +20% <5% Very Distributor Low +10% +20% +10% Retailer - - - Consumer
Slide 9: Retail Strategy
Retail Strategy E-commerce Retail Stores (own and franchises) 1. Leverage Nashua Brand Equity and Advertising 2. Source and sell Multi brands 3. Prepare for shortening of distribution pipeline (Consumer & Systems products) 4. Position for e-commerce evolution
Slide 10: Percentage of Internet Usage
Percentage of Internet Usage 80.00% 70.00% 60.00% 50.00% Percentage South Africa 40.00% USA UK 30.00% 20.00% 10.00% 0.00% 2002 2003 2004 2005 2006 Year
Slide 11: E-Commerce % Market Share of Total Retail Sales (USA)
E-Commerce % Market Share of Total Retail Sales (USA) 20.00% 18.00% 16.00% 14.00% 12.00% 2000 Percentage 2001 10.00% 2002 2003 8.00% 6.00% 4.00% 2.00% 0.00% Books and Clothing, Footwear Computer Electronics and Music, Vidioes and Office Supplies Furniture and Magazines and Accessories Hardware and A
Slide 12: Consumer Goods Internet vs Traditional Retail Sales by Product Type
Consumer Goods Internet vs Traditional Retail Sales by Product Type (European Countries) Jan-Mar 2007 100 4.5 4 8.2 5.9 8.5 13.4 15.4 13.1 90 80 70 60 Internet 50 95.5 96 Traditional 91.8 94.1 91.5 86.6 84.6 86.9 40 30 20 10 0 o m e ot t cs gy es ar ke es co Ph ni dw nc lo ar nc le tro no M Te ia ar
Slide 13: Consumer Goods Internet vs Traditional Retail Sales by Country
Consumer Goods Internet vs Traditional Retail Sales by Country (European Countries) Jan-Mar 2007 7,3 6,2 5,2 4,6 2,8 1,7 Internet 12,1 11,4 10,5 9,1 8,1 Sales 8,1 % 93,8 94,8 95,4 97,2 98,3 87,9 88,6 89,5 90,9 91,9 92,7 Trad. Sales 91,9 % DE CZ UK NL FR CH AT SE IT PL ES
Slide 14: Online CE retail will reach 24% of total CE retail sales in 2011
Online CE retail will reach 24% of total CE retail sales in 2011
Slide 15: UK Industry result by category
UK Industry result by category DSC - 2006 DSC - 2007 18% 20% Traditional Internet CAM - 2006 CAM - 2007 15% 17% LCD - 2006 LCD - 2007 9% 14% PDP - 2006 PDP - 2007 8% 13%