Reunert Limited · JSE:RLO
Reunert — Corporate Update (July 2008)
17 slides from Reunert's corporate update, Jul 30, 2008
Slide 1: Ernst Schutte African Cables
Ernst Schutte African Cables 30 July 2008
Slide 2: CBI-electric: African Cables
CBI-electric: african cables ▪ An empowered company ▪ Powerhouse Utilities (Pty) Ltd ▪ 25,1% shareholding ▪ Pre-dominantly a supplier and installer of power cable systems ▪ Power cable not manufactured locally is sourced from elsewhere and supplied ▪ Diagnostics and maintenance of power cable system
Slide 3: Facilities
Facilities ▪ Total plant area of 132 950 sqm of which 75 522 is under roof ▪ Production capacity of 45 000 Cable Tons p.a. currently, going up to 50 000 tons next year ▪ Copper usage ± 16 000 tons per annum going up to ± 20 000 tons ▪ Available capacity in Cafca of ± 3 600 – 4 800 tons per annum mai
Slide 4: Facilities: Capacity Utilization
Facilities Capacity Utilization Capacity Available Product Range 2007/2008 2008/2009 vs 2007/2008 Bells 85% 110% Mains 90% 110% Splits 60% 100% ABC 50% 100% Paper 95% 100% MV XLPE 95% 125% HV XLPE 100% 100% Cable Installation 85% 120% ACSR 50% 100%
Slide 5: Quality
Quality ▪ SABS Mark Holder ▪ Production accreditation ▪ ISO 9001:2000 ▪ ISO 9001 Listing for Power Installations in 2001 ▪ ISO 14001 and ISO 18001
Slide 6: Low Voltage Cables
Low Voltage Cables ▪ 1.0mm² to 1000mm² single and multi- core (dependant on product) ▪ 300/500V to 3.8/6.6kV ▪ Stranded copper or aluminium and solid sector aluminium conductors ▪ PVC/LVXLPE insulated ▪ Manufactured to SANS 1507
Slide 7: ABC and Split Concentric
ABC and Split Concentric ▪ 25mm² to 150mm² phase conductors with support core ▪ 600/1000V to 19/33kV ▪ Only permit holder for SABS 1713 in South Africa ▪ Stranded aluminium conductors ▪ XLPE insulated ▪ Manufactured to SANS 1418, 1713 and 1507
Slide 8: Paper Insulated Lead Cables
Paper Insulated Lead Cables ▪ 25mm² to 400mm² in single core or 3 cores ▪ 3.8/6.6kV to 19/33kV ▪ Stranded copper or aluminium conductors ▪ Paper insulated ▪ Manufactured to SANS 97
Slide 9: Medium Voltage XLPE
Medium Voltage XLPE ▪ 25mm² to 1000mm² in single core and 25mm² to 300mm² in 3 cores ▪ 3.8/6.6kV to 19/33kV ▪ Stranded copper or aluminium conductors ▪ MV XLPE insulated ▪ Manufactured to SANS 1339 ▪ Underground reticulation and main distribution systems
Slide 10: Supertension Cables
Supertension Cables ▪ 300mm² to 1000mm² in single core only ▪ 24/42kV to 76/132kV ▪ Stranded copper or aluminium conductors ▪ HV XLPE insulated ▪ Manufactured to IEC60840 ▪ Underground reticulation, transmission,sub-stations and power stations
Slide 11: Aluminium Conductor Steel Reinforced (ACSR)
Aluminium Conductor Steel Reinforced (ACSR) ▪ Seven strand ▪ Multi strand ▪ Alloy ▪ All Aluminium
Slide 12: Market Overview
Market Overview ▪ African Cables market share around 33% ▪ Competitors ▪ Aberdare ▪ M-Tec ▪ South Ocean ▪ Zamefa (Zambia) ▪ Other imports ▪ Locally manufactured ± 75% ▪ Imported ± 25% ▪ Imports are not more because of import tariffs protection and local back-up service ▪ Infrastructure spending expe
Slide 13: Turnover YTD March '08
Turnover YTD March ‘08 Low Voltage T urnover Medium Voltage T urnover 50% of T otal EXPORT 38% of T otal INDUSTRY 3% INDUSTRY 0% 1% UTILITIES EXPORT 6% UTILITIES UTILITIES MINING MINING 28% GENERAL MARKET UTILITIES GENERAL MARKET GENERAL GENERAL MARKET 38% 50% MARKET 53% INDUSTRY MINING INDUSTRY 16%
Slide 14: Production Output Forecast
Production Output Forecast Cumulative Output 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Oct Nov Dec Jan Feb Mrch Apr May Jun Jul Aug Sept 2004 2005 2006 2007 2008
Slide 15: Critical Success Factors
Critical Success Factors ▪ Full range of power cable ▪ Quality of product and service ▪ Technical back-up ▪ Partnership with key customers ▪ Value added services ▪ Installation ▪ Maintenance ▪ Consignment stock
Slide 16: Areas of Concern
Areas of Concern ▪ Reducing import tariffs ▪ Currently 7,5% from E.U. reducing to 0% by 2012 ▪ Rest of the world still 15% - reduction dependent on specific agreements between RSA and other countries ▪ The SADC countries – 0% ▪ Volatility of R price of materials ▪ China and India ▪ Softening of dema
Slide 17: Capital Expenditure
Capital Expenditure ▪ Capital expenditure of R32 million spent and committed for current financial year ▪ R72 million expenditure – planned for 2008/2009 financial year ▪ Above expenditure will increase capacity and address the move from paper to XLPE insulated MV cable