Slides
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ELECTRICAL ENGINEERING CAPITAL MARKETS DAY 15 JULY 2025
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WELCOME AND HOUSEKEEPING 2
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3 Emergency exits ˃ In the event of a fire alarm or medical emergency, please follow the guide to a point of safety Bathrooms ˃ CBi-electric: african cables: back of the venue ˃ CBi-electric: low voltage: situated at the top of the stairs as you enter, towards your left Guided tours ˃ Each row will form a group, please stay with your guide ˃ Please note no cellphones, cameras or videos may be used while on the guided tour ˃ CBi-electric: african cables: wear your reflective vest for visibility and insert ear plugs before entering the factory ˃ Kindly return the vest afterwards, but keep the ear plugs for CBi-electric: low voltage ˃ CBi-electric: african cables - use the demarcated walkways throughout the factory: − when walking towards the factory it is situated on the left − painted in red inside the factory − use a “zebra crossing” to move from one side of the factory to the other ˃ Adhere to the safety signs warning of potential dangers in and around the factory HOUSEKEEPING AND SAFETY PROTOCOLS
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AGENDA 4 CBi-electric: african cables, Vereeniging 1 2 3 4 5 6 CBi-electric: low voltage, Elandsfontein Welcome and introductions Q&A and closing remarks CBi-electric: low voltage tour Overview of CBi-electric: low voltage Zamefa video and tour of CBi-electric: african cables Overview of Electrical Engineering Segment structure, CBi-electric: african cables and CBi-electric: zamefa 08:30 – 11:30 12:30 – 15:45 7 Overview of Reunert
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Alan Dickson Group CEO Deon de Kock Segment CEO Electrical Engineering Charl Osborne Managing Director CBi-electric: low voltage TODAY’S SPEAKERS 5 Luis Corte Managing Director CBi-electric: african cables Kangwa Bwalya Managing Director CBi-electric: zamefa
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˃ Market cap: R14,8bn* ˃ Revenue: R14,4 bn* ˃ Operating profit: R1,5 bn* ˃ Founded in 1888 ˃ Listed in 1948 ˃ 9th oldest company on the JSE ˃ 137 years of impactful contributions to SA ˃ More than 75 000 customers ˃ 350 independent channel partners ˃ About 6 500** employees ˃ 1 Group ˃ 3 Segments ˃ 12 Clusters ˃ 14 manufacturing plants ˃ 12 innovation centres ˃ 10 testing laboratories ˃ 4 data centres UNDERSTANDING THE REUNERT GROUP 6 Reunert in numbers Headquartered in Woodmead, SA, with offices in ˃ Australia ˃ Lesotho ˃ Mauritius ˃ Kingdom of Saudi Arabia ˃ South East Asia ˃ USA ˃ Zambia *As at 30 Sep 2024
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7 Deon de Kock Segment CEO Electrical Engineering Graeme Eddey Segment CEO ICT Trevor Raman Segment CEO Applied Electronics OVERVIEW OF THE GROUP SEGMENTS AND CLUSTERS
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z Effective strategy execution accelerating growth through:- ˃ Scaled expansion of the ICT segment; ˃ Continued build-out of Renewable Energy capabilities; and ˃ International growth in Electrical Engineering and Applied Electronics segments 1. Strong balance sheet enables strategic capital deployment 2. Targeted investments in high-growth areas: ˃ Digital integration solutions within the ICT Segment ˃ Expansion of renewable energy portfolio, including owned solar energy assets ˃ Scaling international revenue contribution Growth strategies focused on accelerated earnings Focused strategy enabling organic growth in:- ˃ Electrical Engineering, ˃ ICT; and ˃ Applied Electronics, with a strategic emphasis on Defence and Renewable Energy opportunities 1. Established, defendable market leadership positions 2. Strong industry fundamentals support continued growth of the core businesses 3. Low capital investment supports efficient value creation for core businesses 4. Proven track record of consistent earnings growth Strategically aligned, diversified portfolio of high-quality assets Solid cash generation and a strong balance sheet ˃ Strong cash generation for growth and value creation ˃ Low debt levels ensuring a solid financial foundation ˃ Solid equity position supporting strategic investments ˃ Well managed capital structure optimising returns and minimising costs 1. EBITDA-to-free cash flow conversion >65%, reflecting capital efficiency 2. Enhancing total shareholder return through dividends, share buybacks, and strategic investment Delivering sustained financial performance through strategic initiatives and organic growth, disciplined capital allocation and a strong balance sheet • Management team with proven execution capability • Ethical culture and practices • Commitment to ESG integration Long-term value creation, through • KPIs aligned to strategy execution • Effective governance and risk oversight framework • Values driven leadership Responsible business practices strengthen the Investment Case Expected outcomes Driven by REUNERT’S INVESTMENT CASE 8
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ELECTRICAL ENGINEERING SEGMENT 1
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ELECTRICAL ENGINEERING OVERVIEW Power cables Key facts Circuit breakers Manufacturing facilities ˃ 2 for circuit breakers in South Africa and in Lesotho ˃ 2 for cables and copper rod in South Africa and Zambia 2 520 employees CBi-electric: low voltage serves export markets through subsidiaries in Australia, USA and an agent in Europe, numerous distributors in Asia and full-time employees in India Electrical engineering Contribution to Group segment revenue: 2024 Contribution to Group segment operating profit: 2024 52% (2023: 52%) 43% (2023: 38%) 2Renewable Energy numbers not included
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OUR BUSINESS UNITS www.africancables.com www.zamefa.com www.cbi-electric.com CBi-electric: african cables is a leading sub- Saharan supplier of energy infrastructure since 1935 ˃ designs, manufactures, installs and maintains a comprehensive range of electric power cables ˃ employs more than 700 in Vereeniging ˃ level 1 B-BBEE contributor ˃ cumulative executive management experience: 215 years CBi-electric: zamefa is the largest copper beneficiation processing facility in Zambia since 1968 ˃ listed on the Lusaka Securities Exchange ˃ vertically integrated manufacturer, processing copper cathodes into finished products ˃ 335 direct employees in Luanshya ˃ cumulative executive management experience: 135 years CBi-electric: low voltage is a South African- manufacturer and supplier of electrical protection, control, and automation products focused on low voltage electrical distribution since 1949 ˃ key player in circuit protection in both residential, commercial, and industrial sectors locally and internationally ˃ employs about 1 400 people in both Elandsfontein and Lesotho ˃ cumulative executive management experience: 137 years Manufactures ˃ Low, medium and high voltage cables ˃ Overhead conductors ˃ Specialty cables designed for the mining, utilities, industry, export, and renewable energy sectors Product portfolio ˃ Copper rods, a raw material for various electrical applications ˃ Low voltage power cables ˃ Aluminium overhead conductors ˃ General insulated wires ˃ Control cables Product and service offering: ˃ Circuit breakers ˃ Smart energy solutions ˃ Traditional electromechanical devices 3
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OVERVIEW OF KEY HIGHLIGHTS 4 EE Segment - operating leverage Internationalisation Safety measure 2022 2023 2024 CBi LV 0,8 1,7 0,2 Afcab 0,4 0,4 0,3 Zamefa - 0,2 0,2 5 551 6 266 7 160 7 682 FY21 FY22 FY23 FY24 +11,4%1 Revenue (Rm) PBIT (Rm) 373 436 552 665 FY21 FY22 FY23 FY24 +21,3%1 International vs SA Revenue 62% 38% FY21 64% 36% FY22 69% 31% FY23 62% 38% FY24 5 551 6 266 7 160 7 682 South African Revenue International Revenue 0,0 0,5 1,0 1,5 2,0 FY22 FY23 FY24 CBi Low Voltage Afcab Zamefa LTIFR
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LOW VOLTAGE 1
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OUR FACILITIES 1. Elandsfontein: o a vertically integrated facility housing almost 500 employees o produces between one million and two million components per day o implementation of a hybrid manufacturing model to control costs underway 2. Lesotho: o employs more than 900 employees o manufactures between 30 000 and 40 000 poles per day o capacity exists to add two new high volume, semi -automated production lines o remote monitoring permits the measurement of aggregated output per person, thereby raising efficiencies and capacity utilisation 3. CBI Inc, USA: o national sales office that employs 8 staff members 4. CBI Australia: o Employs 44 staff members with both a national sales office and panel manufacturing facility
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NOTABLE SUCCESSES ˃ Founded in 1949 as a joint venture with Heinemann Electric, more than 75 years in operation ˃ Developed the world's first high sensitivity earth leakage relay in 1957 ˃ Established unique private testing facility in the Southern Hemisphere ˃ Own and operate the second largest toolroom in the southern Hemisphere, other than in the motor industry ˃ Supply product into first world high speed rail and signalling sector – China, Japan, France and Great Britan vs local presence ˃ Developed and supply customer specific products for Microsoft AI and Gridcoin projects ˃ In 2025 CBi-electric:low voltage: − became only the 4th global manufacturer in history to obtain UL943 – GFCI − sold it’s first products into the USA residential market − developed our first hybrid circuit breaker; hydraulic magnetic / thermal magnetic (in certification) Developed and launched 1st smart IoT devices for residential energy automation and control via App. Launched in 2022 and sold more than 244 000 devices to date
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OUR WINNING PRODUCT RANGE Hydraulic magnetic technology offers superior precision compared to thermal magnetic capabilities Circuit breakers The protection of lives and facilities through early disengagement Technical expertise focused on niche, precision applications ˃ ISO 9001 Quality management ˃ SANS South African market standards ˃ OHSAS 18001 Occupational health and safety ˃ UL/CSA North American & Canadian market standards Future solutions Bespoke products developed for the edge, tuned for insight – ready for the future Smart devices Wi-fi load control devices, App linked and automation capable Distribution boards Fully assembled low voltage power distribution and load management Custom solutions Protection designed to accelerate digital transformation Compliance and certifications ˃ IEC European market standards ˃ CCC Asian market standards ˃ AS / NZS Australian / New Zealand market standards
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OUR BUSINESS MODEL SA and the rest of Africa Protect and grow our product footprint through well established and managed routes to market for: ˃ Wholesale, retail, OEM and mining which is achieved and supported through: − Unique technical expertise − Specialised training for: o consulting engineers o Universities o FET / VET colleges o mines and o schools − New innovative and smart product introductions (IoT) − Creative and focused marketing − Representation on relevant industry bodies and standards committees − Well recognised brand name and product quality Exports Maintain and grow our product footprint within the existing data / telecoms market, whilst developing new innovative products for existing market segments and new market verticals through: − The appointment of new leadership in the USA and Australia − Recruiting new key skills − Attaining new certification for existing products required for new applications − New and innovative product development for existing and new markets (business is project dependant) − Design and manufacturing flexibility; quick turn arounds for bespoke customer requirements − Customer-funded development projects (WEB, Emcomp, Geist) − High product quality and reliability as an application requirement − Short product lead times
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OUR BUSINESS MODEL| MITIGATING AGAINST US TARIFFS Route to market Background ˃ CBi-electric: low voltage imported duty free under AGOA; import duty excluding AGOA is 2,7% ˃ All sales in USA are through our 100%-owned subsidiary, CBi Inc. − CBi Inc sells product through distribution channels and directly to USA OEMs / system integrators ˃ No local USA manufacturers; significant competition in Mexico and China ˃ The US introduced “30% reciprocal" tariffs in South Africa on 02 April 2025; suspended until 09 July 2025 − This 90-day pause provided a window for South Africa to negotiate with the US ˃ Despite the suspension, a 10% tariff was applied to imports from South Africa Mitigation ˃ The following mitigating actions have been completed: 1. Investigate and understand the full impact on: − exports to the USA (completed) − respective tariffs from key competitors such as China, Europe and the USA (completed) 2. Implement a 10% tariff increase to the wholesale / distribution network (completed) − Negotiate and implement a 7% tariff increase to the system integrators / OEMs (in process) − Manage an internal product cost reduction of 3% through value engineering and hybrid component manufacturing (completed) The 10% increases to the wholesale / distributor networks were well received. The success of implementing the 7% increase to the system integrators / OEMs is dependant on continuous on-time deliveries
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GROWTH TRAJECTORY OF THE MARKETS WE SERVE Geographic reach ˃ Key sectors served are residential, commercial and industrial, mining, rail and telecommunications in Africa, Asia, Australia, Europe and the USA − Subsidiaries: Australia and the USA − Partnerships: Emcomp (Europe) and Mitsubishi (Japan) ˃ Global low voltage equipment market estimated at over US$41 billion growing at a CAGR of 8,2% − Strong growth expected in smart IoT devices and energy-efficient solutions ˃ Key customers are: − Wholesale and retail − OEMs and utilities (partnership tenders) − Trade partnerships - EMCOMP − Branding partnerships - WEB ˃ Key competitors are: − Schneider Electric, France (China) − ABB, Switzerland (China) − Chint, China − Various players in China, India, Turkey
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Growth opportunities Challenges in the markets where we operate ˃ South African sales impacted by: − the state of the local economy − low infrastructure investment − increasing competition from cheaper and/or non-compliant imports − lack of oversight and execution by local entities responsible for quality control ˃ Exports impacted by threat of rising tariffs − USA is our largest export market, about R300 million in annual sales − Circuit breaker order book remains at 1 million poles, consistent over the last 16 months − Despite strong sales, tariffs have created a 10% margin impact in April, May, and June 2025; risk that it may increase to 30% − Possibility of facing competitors that sell into the USA duty-free e.g. Mexico ˃ Aligned with national infrastructure priorities − Reticulation systems (especially in new port, rail, and water infrastructure) require low-voltage distribution equipment − Circuit breakers are required in both public and private sector builds − As municipalities become less functional, circuit protection equipment increasingly procured by private utilities or public-private infrastructure consortia with better credit profiles and standards requirements ˃ Reliance on weakening domestic markets reduced − Operational efficiencies increased through improved production volumes (to scale for export growth) − New export product development – high volume & increased margin ˃ Targeting global growth opportunities − Global 5G rollout requires distributed power delivery with reliable circuit protection − Continued growth in AI and data mining with intelligent circuit breakers (bespoke solutions) CHALLENGES AND OPPORTUNITIES IN THE MARKETS WE SERVE
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WHAT DIFFERENTIATES US IN THE MARKET? 1 2 3 4 Circuit breaker technology Differentiator Benefits of hydraulic magnetic technology ˃ Temperature independence ˃ Trip accuracy ˃ Compact form factor Feature Competitive advantage Technology relevant where uptime and accuracy are critical ˃ Trip curve consistent across temperature variations ˃ Precise fault detection reduces nuisance tripping ˃ Ideal for space-constrained environments like telecoms or rail International market penetration 65% of products produced are exported to developed markets ˃ Products meet internationally recognised safety standards ˃ Well positioned for global supply chains Focus on niche applications across select markets ˃ Design flexibility vs volume and turn around time ˃ Proven quality and operational longevity in high compliance applications with stringent safety standards – high speed rail and signalling ˃ USA - hydraulic-magnetic breakers are preferred in niche telecoms and data power distribution units Proprietary R&D and in- house tooling ˃ Only private testing facility of its kind in the Southern Hemisphere ˃ Second largest toolroom in the Southern Hemisphere ˃ Vertically integrated manufacturing ˃ New products developed through collaboration and long term strategic partnerships ˃ Own the value chain – design, tooling, manufacture, assembly, testing, packaging and shipping Specialised knowledge, skills and technical prowess ˃ Niche player with specialised products ˃ Competitive in customisation and rapid product development ˃ Specialised engineering / technical customer service ˃ Long term staff retention ˃ Responsible business practices allow for an ethical culture and the reinforcement of the Group Values and Code of Ethics ˃ Continually improving process efficiency
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Q&A 10 > RMB Big 5 Conference 17 September 2025 > Full-year results SENS 20 November 2025 > Integrated Report 19 December 2025 KEY UPCOMING DATES Contact us karens@reunert.co.za
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ZAMEFA 1 METAL FABRICATORS OF ZAMBIA
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2 1968 1971 2004 2007 2013 1996 2014 2016 2019 KEY MILESTONES IN ZAMEFA’S HISTORY 1990s: Government liberalisation and privatisation program leading to increased competition and collapse of several Zambian businesses ZAMEFA incorporated (with Zambian Government as majority shareholder •Privatised (with Phelps Dodge as majority shareholder) •ISO 9001 certification General Cable announces decision to divest Asia Pacific and Africa •Listed on Lusaka Securities Exchange (LuSE) •ISO 14001 certification •First Zambian company to obtain OHSAS 18001 (now ISO 45001) . Opens new Sales and Distribution Centre in Lusaka (Makeni) Opens as a manufacturer of power cables and building wire using billet extrusion General Cable acquires majority stake Reunert acquires majority stake 2020s Despite non-refund of VAT and the outbreak of COVID-19 pandemic, ZAMEFA was able to sustain its business operations while safeguarding the health and well-being of its employees and other stakeholders Peak of financial distress caused by non-refund of VAT by Government
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NOTABLE SUCCESSES ˃ Largest and oldest fully integrated copper rod and cable producer in Zambia with unrivalled reputation for quality ˃ Significant contributor to Zambia's industrialisation and export economy − The largest local “value-adder” to Zambia’s copper − Exports directly to 7 of Zambia’s 8 neighbours − One of the largest non-traditional exporters in Zambia ˃ Zamefa has a proud history of resilience and overcoming challenges in a difficult market: − the liberalisation of Zambia’s economy in the early 1990s − the privatisation of Zambia’s Government owned/ controlled entities in the mid-1990s when many companies collapsed
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OUR WINNING PRODUCT RANGE PVC/ XLPE insulated cables: General wire Aluminium conductors & ABC XLPE insulated cables: armoured and unamoured LV Premium products backed by market leading accreditations ˃ ISO 9001, ISO14001: Quality & environmental management ˃ ISO 45001: Occupational health and safety ˃ SANS 182, 1411, 1418 & 1507: SA National Specifications ˃ BS6004, BS6360, BS6500: British Standards Copper rod wires & shapes 1 core LV-XLPE AWA 3,300V 1 core LV-XLPE Unarmoured 1000 V 3 and 4 core LV-XLPE SWA 1000V 3 and 4 core XLPE unarmoured 1000V 7-37 cores LV XLPE 1000V SWA 7-37 cores LV XLPE 1000V unarmoured 7-37 cores LV XLPE 1000V unarmoured Building wire Flat twin Flat twin and earth Flexible multicore Power Panel wire Copper Busbars Stranded Annealed Copper Stranded Hard Drawn Copper LV ABC Low voltage XLPE Power cable, 600/1000V (ABC XLPE Insulated + Insulated Support) AAC AAAC1 ˃ ZS688: Zambian Bureau of Standards ˃ TZS 1912: Product standard ˃ ASTM B49: American Society for Testing and Materials ˃ IEC60502: International Electrotechnical Commission Compliance and certifications
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OUR BUSINESS MODEL Drivers of growth / business ˃ Continued electrification drive in Zambia, primarily through ZESCO ˃ Recovery and expansion of the mining industry in Zambia ˃ Stability in the Southern DRC, particularly in Katanga and Lualaba regions ˃ Required improvement in SA’s GDFI How we address the markets we serve Route-to-market ˃ Zambian utilities – direct sales through tenders (publicly advertised or by invitation) ˃ Zambian mining industry – direct sales to the mines or through contractors for project work ˃ DRC mining industry – through local distributor/partner ˃ Other exports to Botswana, Namibia, the Democratic Republic of Congo (DRC), Zimbabwe, Malawi and Tanzania– mostly direct to other manufacturers or distributors How we create value ˃ Differentiate Zamefa as a reliable supplier of high purity, oxygen-free copper rods and wires sourced from Zambian mines ˃ Leverage the Zamefa brand to attract premium pricing in certain markets
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GROWTH TRAJECTORY OF THE MARKETS WE SERVE Geographic reach ˃ Key sectors served are construction, manufacturing, mining and energy in Zambia and neighbouring countries such as Botswana, Namibia, the Democratic Republic of Congo (DRC), Zimbabwe, Malawi and Tanzania − Aspirations to increase our market share in South Africa and Zambia − Zambia has sustained demand for underground cables − Regional demand driven by infrastructure development, mining and electrification projects ˃ Participate in mining projects in Botswana, Namibia and Zambia, the DRC and Tanzania; and − renewable energy projects in the DRC and Zambia ˃ Key customers are Zesco, mining companies, distributors and other cable manufacturers in SADC and COMESA − Potential exists for broader African exports to East Africa ˃ Key competitors are: − South Ocean, South Africa − Neelkanth Cables, Zambia − Elsewedy Electric, Egypt − Local manufacturers in Eastern and Southern Africa
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Growth opportunities Challenges in the markets where we operate ˃ Security of energy supply and currency volatility − Zambian Kwacha is a highly volatile currency − Zambia is still dependent on hydro power sources, making it susceptible to droughts ˃ Reliance on state utility, Zesco − While Zesco has improved efficiency due to regulatory pressure (e.g. 90- day penalty for delayed connections), it remains a state utility facing liquidity pressures − Liquidity issues forced customers to pay elevated tariffs as power was imported at 35% tariffs ˃ Exposure to commodity price volatility − Copper accounts for ~65% of Zamefa’s cost base; price increments, if not passed on, create margin compression − Exposure to commodity risk necessitates hedging strategies or pass- through pricing models ˃ Exposure to political risk − Competitiveness in the export market impacted by the withdrawal of implied duties under the Duty Drawback Scheme − Change of government after the upcoming 2026 elections risks reversal in privatisation and infrastructure investment trends ˃ Mining sector driven by sustained underground cable demand − Zamefa benefits from increased underground cabling to new and re-privatised copper mines in Zambia and the Democratic Republic of Congo (DRC) − Two major mines were re-privatised; new owners ramping up copper production to participate in mining projects ˃ Domestic demand pipeline remains stable − Long-term framework contracts with Zesco remain intact − Good visibility on orders provided Zesco remains liquid − Local transmission and power upgrades are required to support logistics and industrial projects ˃ Zamefa produces both copper and aluminium conductors − Switch to aluminium underground cables from copper accelerating due to copper price volatility and technical adaptations − Cost-effective material substitution reduces input risk and enables price competitiveness − Strategic procurement to optimise cost-performance is in place ˃ Potential for export growth and regional expansion − Active exports to DRC − Scope to tap into new infrastructure projects like private-led water, port, and rail developments across Southern Africa CHALLENGES AND OPPORTUNITIES IN THE MARKETS WE SERVE
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WHAT DIFFERENTIATES US IN THE MARKET? 1 2 3 4 Producer of oxygen-free copper rods, wires, and power cables for various applications Differentiator ˃ Recognised as a sophisticated and world-class wire and cable producer Feature Competitive advantage ˃ Access to local high-grade copper resources ˃ Competitive pricing due to vertical integration ˃ Key supplier in Southern and Central Africa and the regional market Trusted and respected brand with established distribution networks ˃ Strategic location for regional exports ˃ Leading market position and diversified product portfolio ˃ Cost-effective solutions leveraging local resources Supplier of choice in Zambia ˃ Oldest fully integrated copper rod and cable producer in Zambia with unrivalled reputation for quality ˃ Supports ZESCO’s drive to transition from copper to aluminium cables and offers technical support and innovative cable designs ˃ Grows and retains superior copper rod supply in Sub- Saharan Africa and maximises a premium on oxygen-free copper rod Specialised knowledge, skills and technical prowess ˃ Leadership team has extensive experience and technical know-how in product development, financial management and marketing ˃ Focused skills development initiatives drive innovation, superior delivery execution and customer satisfaction ˃ Proven track record of excellent strategy execution
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1 AFRICAN CABLES
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MILESTONES| OUR JOURNEY African Cables factory building started Started to manufacture super tension cables, up to and including 132kV Integrated into Reunert Launch of the CBi-electric brand Registered by an immigrant pioneer Donald Watson CVV (Continuous Catenary Vulcanizing) line for up to 275kV HV XLPE cable was commissioned 1935 1979 2006 Power Installations, becomes part of our company. designing, installing, testing& commissioning 11kV – 400kV cable systems 1986 2014 Achieved level 1 B-BBEE status & have kept it up ever since 2016 Conform line for seamless aluminium sheath commissioned 20241936 2
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3 EVOLUTION OF THE FACTORY: 1936 vs 1979 Notable successes ˃ Established in 1935, first major electrical cable manufacturer in Southern Africa ˃ First high voltage (HV) manufacturer south of the equator in Africa ˃ Only cable manufacturer with in-house HV systems design, installation and testing capabilities ˃ Level 1 B-BBEE accreditation since 2016
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CURRENT FACTORY LAYOUT Upcast Design & chem lab Wire drawing plant Paper cable plant LV cable plant VCV – XLPE HV cable MV XLPE cable plant MV XLPE cable test area HV routine and type test lab Cable test area Despatch area Admin & Commercial ACSR plant 4 We are Here Land: 133 000 m2 22 Buildings Roof area: 72 000 m2
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Power by Innovation… Innovation Through Partnership ELECTRICITY DISTRIBUTION ILLUSTRATION 5 S 111. Power plant Step-up transformer 2. Transmission substation 3. Distribution substation5. Home 4. Transformers 220V 400V 11kV 220V 11kV 33kV 33kV 132kV 400kV
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6 OUR WINNING PRODUCT RANGE Bells & mains cable HV XLPE Cable Split Concentric (OHSC) ABC Cable Overhead ACSR MV XLPE & PILC Paper Cable ˃ ISO 9001:2008 Quality management ˃ ISO 14001:2004 Environmental management ˃ OHSAS 18001:2007 Occupational health and safety ˃ 9EP CIDB rating Highest rating for electrical engineering Product CertificationsCompliance and Certifications ˃ SABS 097 Paper insulated Lead Sheath cable ˃ SABS 1339 Medium Voltage XLPE Insulated cable ˃ SABS 1507 Low Voltage PVC/ XLPE cable ˃ SABS 1418/ 1713 Aerial Bundled Conductor LV/ MV ˃ BS EN 50618- IEC 62930 Solar Cable
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7 OUR BUSINESS MODEL ˃ We transform commodities into an engineering product that connects electrical power generation systems to end-users ˃ For power cables, the key growth drivers are infrastructure development, maintenance and upgrades: − In the public sector through: o Growth of transmission and distribution grid o Port and rail network expansion o Municipal supply for commercial and residential developments o Maintenance of the electrical network o Rural electrification − In the private sector through: o Digitalization via data centers o Commercial and residential developments o Mining expansion and maintenance o Agricultural developments and growth o Contractors to private and public infrastructure
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MARKETS WE SERVE Geographic reach ˃ South African cable market − Large distributors, retailers , major EPCs, renewable energy developers and electrical contractors − Utilities and municipalities: ESKOM, Transnet, City Power, City Of Cape Town, Tshwane, Ekurhuleni, Stellenbosch, Mandela Bay and some more ˃ Transmission Development Plan (TDP) described as “the single largest infrastructure project” underway in South Africa − Critical for long-term energy security, industrialisation, and economic competitiveness − ~14,000 km of new transmission lines planned − Full-scale rollout expected to commence by 2026/7 ˃ Regional sectors are focused on mining and renewable energy − Southern Africa: South Africa, Namibia, Botswana, Mozambique, Eswatini, Lesotho, Zimbabwe and Zambia − Central Africa: Democratic Republic of Congo, Angola − Other Countries: Australia Key competitors include: Aberdare & M-Tec - South Africa/ Nexans – France/ Prysmian Group – Italy/ El Sewedy - Egypt 8
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ROUTE-TO -MARKET ˃ Direct sales through SOEs, municipalities and mines, while indirect sales are made via distributors, EPCs and contractors in Southern and East Africa Industry 14,9% Mines 14,9% Municipalities 4,5% Eskom 7,1% Wholesalers EPC Contractors Municipalities Renewable projects Distributors 55,6% Contracts Projects / EPC Contractors (selected) NTCSA Eskom Distribution Eskom Generation Export 3,0% Contractors (selected) BUSINESS DRIVERS Pricing and delivery performance Available funding implementation capacity Commodity prices forex affordability Fixed 12-month sharp pricing TDP Commodity prices and stock availability Fixed price and critical on-time delivery
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10 ˃ Pioneering manufacturers of electrical power cables in the region with facilities in South Africa, Zambia and Zimbabwe − Creating value for customers by providing electrical engineering solutions: o 89 years of expertise in design services o Manufacturing quality power cables for diverse types of infrastructure o Installing and testing HV electrical projects ˃ Differentiating from our competitors − Focused customer centricity aimed into partnerships − Ethical Values well known by business partners i.e. customers, employees and suppliers − Continuously developing skills and upscaling our people − Delivering consistent results to shareholders ˃ Key competitive advantages: − The only fully integrated manufacturer of copper power cables in South Africa − Largest producer of copper rod in Sub-Saharan Africa − Only high voltage manufacturer in Sub-Saharan Africa with in-house technical design, installation and testing capabilities ADDRESSING THE MARKETS SERVED
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˃ Working closely with municipalities − Weak governance and procurement compliance − Payments delays − Funding management ˃ Participating in ESKOM’s TDP − Established system takes o 120 days for cost estimate letters o 180 days for budget quotes − Limited rollout speed with traditional partners ˃ Partnering in independent transmission projects − Some consortiums may be fully funded by their country − Proposal of projects with optimized design and technology − Penalties associated to performance ˃ Partnering with public-private-partnerships (PPPs) − Introducing global competition and offtake finance structuring − Offers better economies of scale and execution discipline − Likely to operate under special purpose vehicles ˃ Amendment to Regulation 16 PFMA − Enables private sector to participate in developments − Potential with four municipalities with HV cable − Unsolicited bid proposal ˃ Enough built-in capacity in overhead conductor − Can supply more than 50% of annual requirements − Supplied conductor o Aries – Upington; Kronos – Aries; Aggeneis - Paulputs − Developing new product for certain transmission routes ˃ Potential spending on 1 164km of transmission lines − 7 projects identified − 2025 - 2029: R 50 billion − 2030 - 2034: R 90 billion − Concessionaire 20% equity, 80% debt; 20 years ˃ Public PPPs − Increase in private sector investments in water and transmission − PPP most likely model used in TDP before credit guarantee vehicle active − PPP advisory Unit - Government Technical Advisory Centre CHALLENGES AND OPPORTUNITIES IN THE MARKETS WE SERVE Growth opportunities Challenges in the markets where we operate
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WHAT DIFFERENTIATES US IN THE MARKET? 1 2 3 4 Leading regional manufacturer of full spectrum of cables Differentiator ˃ Insulated low, medium and high voltage cables ˃ Aerial bundled conductors / aluminium conductor steel reinforced ˃ Specialised mining and renewable energy cables Feature Competitive advantage ˃ Strong domestic presence with comprehensive product range ˃ Impeccable quality and service delivery ˃ Recognised key player in Southern Africa's infrastructure development Expertise in design, manufacturing installation, testing and maintenance of electrical networks CBI-electric: power installations is preferred high voltage turn-key projects and service supplier based on its long track record ˃ The only cable manufacturing company in Southern Africa to be accredited with − ISO 9001, ISO 14001, ISO 45001 and − 9EP CIDB rating Only fully integrated cable manufacturer with copper rod ˃ Upcast copper casting lines in South Africa, Zambia and Zimbabwe ˃ Selling to most other cable manufacturers Specialised knowledge, skills and technical prowess ˃ Responsible business practices with ethical culture based on the Group Values and Ethics ˃ Continuously improving performance efficiency using lean manufacturing ˃ 90 years of manufacturing expertise ˃ Technological innovation tailored to African conditions ˃ Level 1 B-BBEE contributor ˃ Access to multiple regional brands of cathode grade A ˃ Cost effectiveness balancing rod manufacturing to own consumption and commercial sales ˃ Transformation time lower than 48 hours 12