Reunert Investors Presentation

1
INVESTOR PRESENTATION 30 JULY 2008 Koos Vorster
WORLD CLASS MANUFACTURER OF COPPER AND OPTICAL
FIBRE COMMUNICATION CABLES AND CABLE ACCESSORIES
2
AGENDA

• STRUCTURE AND SHAREHOLDING
• FACILITIES
• PRODUCT OVERVIEW
• MARKET
• GROWTH PROSPECTS
• QUESTIONS

3

SHAREHOLDING
EFFECTIVE BEE SHAREHOLDING 30.35
4
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
5
COPPER CABLE PRODUCT RANGE
COPPER CABLE
TELECOMMUNICATION CABLE

• INDUSTRIAL CABLE
• INSTRUMENTATION AND CONTROL
• PILOT AND SIGNALING
• DATA AND UTP
• SPECIALISED, e.g. Leaky Feeder Coaxial
• STEEL WIRE ARMOURED
• UVG CABLE

• INDOOR
• OUTDOOR (AERIAL UNDERGROUND)
• DSLAM
• PCM
• DROP WIRE

6
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

7
OPTICAL FIBRE CABLE PRODUCT RANGE
OPTICAL FIBRE CABLE

• SPECIALISED/
• INDUSTRIAL USE
• INSTRUMENTATION
• MINESHAFT
• FIELD DEPLOYABLE
• COMPOSITE CABLES

• INDOOR CABLE
• TAIL CABLE
• BREAKOUT CABLE
• DISTRIBUTION CABLE

• OUTDOOR / UNDERGROUND CABLE
• DUCT TYPE CABLES
• ARMOURED RODENT PROTECTED
• AERIAL CABLE (RURAL, SHORT,
• MEDIUM AND LONG SPAN)

8
CABLE ACCESSORIES PRODUCT RANGE
CABLE ACCESSORIES
OPTICAL FIBRE CABLE ASSEMBLIES
UTP CABLE ASSEMBLIES
OPTICAL FIBRE AND COPPER CABLE JOINT CLOSURES
OPTICAL FIBRE CABLE SLACK BINS
9
CUSTOMER BASE

• TELECOM NETWORKS
• FIXED LINE OPERATORS
• TELKOM /NEOTEL
• MOBILE OPERATORS
• MTN/VODACOM
• OTHER - INFRACO
• EXPORTS

• PROCESS MARKET
• PETROCHEMICAL
• PAPER AND PULP

• MINES
• GOLD
• PLATINUM
• DIAMOND
• COAL

LARGE AND DIVERSE MARKET BOTH LOCALLY AND ABROAD
CITY COUNCILS/METROS

• DATA MARKET
• OEMS

• POWER UTILITIES AND TRANSPORT
• ESKOM
• SPOORNET
• TRANSNET
• SARCC/METRO RAIL

• MIDDLE EAST
• PETROLEUM DEVELOPMENT OMAN
• SAUDI ARAMCO

10
MARKET

• The estimated market that CBI is targeting in
  South Africa is R 1.5bn
• Estimated Imported Cable into this market for the
  year 2007 was
• Copper cable R 123mil
• Fibre Cable R 54mil
• Major export market for CBI is East and West
  Africa, SADEC and Middle East

11
MARKET BREAKDOWN-TELKOM VS NON TELKOM
HISTORICAL TELKOM DEPENDENCE 2005/6
CURRENT OUTLOOK
BASE YEAR INDEX 100
OUTLOOK
INDEX 200
12
PRODUCT BREAKDOWN
HISTORICAL PRODUCT MIX
CURRENT OUTLOOK
13
TYPICAL NETWORK PRE TECHNOLOGY MIGRATION
Residential
Central Office
Local Exchange
Street cabinet
Medium Cu Pr Cable
High Cu Pr Cable
SMEs
Low Cu Pr Cable
Corporate
Coax Cu Cable / Microwave / OFC
Medium Cu Pr Cable
Central Office
Rural
14
TYPICAL NETWORK POST TECHNOLOGY MIGRATION
Central Office
Residential
Local Exchange
Street cabinet
OFC
OFC
SMEs
xDSL Ready Cu Cable
Corporate
WiMax
OFC
WiMax
High Cu Theft
ACCESS Network
Central Office
Rural
15
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
• EXPORTS
• MIDDLE EAST Petro - Chemical
• MEED Report 59,2bn - under evaluation
• AFRICA Natural resource development Oil and
  Mining

16
TELKOM USEAGE COPPER
Kcms 1000
17
NON TELECO COPPER GROWTH
18
EXPORT GROWTH
19
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 CABLE NETWORKS WILL STIMULATE
  PAN AFRICAN FIBRE DEMAND

20
FIBRE MARKET
21
Current / Build In-progress Pan African
Submarine Cables
22
Current / Build In-progress Pan African
Submarine Cables