Investor Presentation May 2002. Content Introduction Financial Results Group Operations Issues Prospects Shareholding.

Investor PresentationMay 2002

Content

• Introduction

• Financial Results

• Group Operations

• Issues

• Prospects

• Shareholding

Salient features

• Revenue R2,5bn +17%

• EBITDA R243m +21%• HEPS 101c +30%• Interim dividend 30 cents +25%

Six months ended 31 March 2002

Growth drivers

• Acquisitions

• Revenue growth

• R/$ exchange rate

• Market share

• Export growth

• Improved efficiencies

Recent acquisitions

• Nashua Mobile– Increased stake to 100%

• Nedcor’s 37,3% & Metropolitan Life’s 4,7%• Effective 1 Dec 2001 • R261,6 million - Includes goodwill of R220,7m

– 10 000 Vodacom contract subscribers • Be Clear and Simple • R700 per active subscriber• Effective 1 February 2002

Recent acquisitions

• Siemens Telecommunications– Increased stake to 40%– Acquired Marconi’s 21,5% Dec 01– Siemens exercised 9% share option in Jan 02

• 12,5% = R161,3m– Includes goodwill of R137,7m

Disclosure

• Segmental analysis regrouped– Strategic focus

• Comparative historical information

O ffice System s

C onsum er products

Te lecom m unica tions

R eutech

E lectron ics

E lectrica l Eng ineering

C ab les

E lectrica l Eng ineering&

C ables

Reunert structure

N ashua100%

R C &C F in Co100%

IQ W orks50%

R oyce Im ag ing100%

O ffice System s

Panason ic100%

N ashua M ob ile100%

Saco System s100%

Futron ic100%

C onsum er p roducts

S ie tel40%

Telecom m unica tions

R D I100%

Fuchs E lectron ics100%

R R S57%

R DL70%

R eutech

E lectron ics

Reunert structure

C BI100%

E lectrica lEngineering

ATC38,6%

African C ab les50%

C ables

E lectrica l Eng ineering&

C ables

Reunert structure

Financial Results

Group Income Statement

R Millions

RevenueEBITDADepreciation & amortisationOperating profitInterest & DividendsPBTTaxationPATAssociatesMinoritiesHeadline earnings adjustments- Amortisation- OtherHeadline earningsHEPS (cents)Diluted HEPS (cents)DPS (cents)EBITDA %Tax rate % before amortisation

20022 469,4

242,9(37,8)205,1

15,5220,6(79,2)141,4

48,3(14,5)

14,0(0,1)

189,1101,2

99,2

9,833,8

20012 112,2

200,4(16,7)183,7

33,5217,2(73,8)143,4

28,6(19,3)

-(0,1)

152,677,776,724,0

9,534,0

% Change

1721

(126)12

(54)2

(7)(2)6925

243029

31

Six Months ended 31 March

30,0 25

Group Balance Sheet31 March

Fixed AssetsGoodwill including associatesInvestmentsR C & C Finance Debtors

Inventory & contracts in progressAccounts ReceivableCash

Shares bought back

R C & C Finance BorrowingsAccounts payable, provisions & taxShareholders for normal dividend

R Millions

NON-CURRENT ASSETS

CURRENT ASSETS

TOTAL ASSETS

SHAREHOLDERS' FUNDS

NON-CURRENT LIABILITIES (NET)

CURRENT LIABILITIES

TOTAL EQUITY & LIABILITIES

2002

1 609,0152,2386,0237,9832,9

1 380,3509,6673,2197,5

2 989,3

1 242,4(234,6)

9,5

1 972,0734,6

1 237,4-

2 989,3

2001

1 083,2155,610,9

179,4748,2

1 525,4432,2570,5522,7

2 608,6

1 025,4(226,2)

13,2

1 796,2636,6

1 112,746,9

2 608,6

Group Cash Flow

6 months ended R Millions

EBITDA

CASH GENERATED BY OPERATIONS

Working Capital (Increase)/DecreaseNet interest & dividends receivedTaxation PaidDividends Paid

Capital ExpenditureShares bought-backPurchase of businessesOther Movements

Net reduction in cash and cash equivalents

2002242,9(2,7)31,9

(165,4)(143,7)

(37,0)(13,2)

-(456,8)

4,2(502,8)

2001200,4

7,756,3

(105,0)(120,2)

39,2(17,2)

(209,5)(1,8)

2,6(186,7)

31 March

Dividends

0

20

40

60

80

100

Cen

ts

1997 1998 1999* 2000 2001 2002

Interim Final

* Excludes Special dividend of 250 cents

1.9

1.92.5

2.4

1.9

Revenue % contribution

Consumer products

41%

Telecomms25%

Cables9%

Electrical Engineering

8% Office Systems

12%

Reutech5%

Operating profit % contribution

Office Systems23%

Consumer products

25%Telecomms33%

Reutech4%

Cables2%

Electrical Engineering

13%

Group Operations

Office Systems

• Revenue R420m +29%

• Operating profit R71m +91%

• Nashua– Strong growth– Digital conversion continuing– High % annuity income

Office systems

• IQ Works– Recently started breaking even– Satisfying growth in sales– Strong synergy with Nashua Mobile

• RC&C Finance Company– Good growth in book– No increase in bad debts

• Royce Imaging– Sales & profit growth– Support Nashua brand of products

Consumer products

• Revenue R1 387m +20%

• Operating profit R78m +42%– Nashua Mobile

– Panasonic

– Futronic

– Saco Systems

Consumer products

• Nashua Mobile– Internal re-organisation

• Least Cost Routers• Corporate Customers

– Clear focus at top end of corporate market• 260 000 Contract subscribers• ARPU over R500 per month• 11 % Churn lowest in market

– Focus on quality service & product offering• SMS gateway• R&D facility opened in Stellenbosch

Consumer products

• Panasonic– Benefit from improved business model

• Direct sales to customer - Leaf• Indent• Retail

• Introduced Futronic• Focus on lower end of consumer market• Sourcing additional product

Telecommunications

• Revenue R867m +57%• Operating profit R100m +112%• Siemens Telecommunications

– Excellent growth• R/$ exchange rate

– Progress on roll-out of Cell C• No overdue debts

– Well positioned to benefit from SNO• Eskom’s Easitel

– 30% of total turnover is into Africa– Cellular opportunities in RSA - GPRS (2.5G); 3G

Reunert40.0%

Siemens60.0%

AngolaFixed Line 0.53%

Cellular 0.28% Internet Subs’ 30 000

ZambiaFixed Line 0.85%

Cellular 0.81%Internet Subs’ 20 000

ZimbabweFixed Line 1.91%

Cellular 2.76%Internet Subs’ 30 000

NamibiaFixed Line 5.94%

Cellular 6.07% Internet Subs’ 30 000

BotswanaFixed Line 9.27%Cellular 16.40%

Internet Subs’ 15 000

RSAFixed Line 11.36%

Cellular 22.77%Internet Subs’ 2 400 000

UgandaFixed Line 0.28%

Cellular 1.55%Internet Subs’ 40 000

Tanzania Fixed Line 0.49%Cellular 0.95%

Internet Subs’ 115 000

MalawiFixed Line 0.44%

Cellular 0.46%Internet Subs’ 15 000

MozambiqueFixed Line 0.44%

Cellular 0.62%Internet Subs’ 30 000

MauritiusFixed Line 23.52%

Cellular 15.49%Internet Subs’ 87 000

SwazilandFixed Line 3.19%

Cellular 4.52%Internet Subs’ 10000

CongoFixed Line 0.75%

Cellular 4.57%Internet Subs’ 500

DRCFixed Line 0.04%

Cellular 0.93%Internet Subs’ 500

Burkina FasoFixed Line 0.45%

Cellular 0.99% Internet Subs’ 10 000

Guinea ConakryFixed Line 0.79%

Cellular1.04% Internet Subs’ 8 000

LesothoFixed Line1.03%

Cellular1.32%Internet Subs’ 1 000

NigeriaFixed Line 0.43 %

Cellular 0.03%Internet Subs’ 200 000

SudanFixed Line1.24%Cellular 0.29%

Internet Subs’ 30 000

MadagascarFixed Line 0.36%

Cellular 0.61%Internet Subs’ 30 000

GambiaFixed Line 2.56%

Cellular 0.43%Internet Subs’ 4 000

EritreaFixed Line 0.8%Cellular 0.00 %

Internet Subs’ 5 000

Feb 2002 © Siemens Fixed NetworkMobile Network

Teledensity

Fixed vs mobile phones

0

2

4

6

8

10

12

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

Mill

ion

s Fixed LineMobile

South Africa

Reutech

• Revenue R186m -26%

• Operating profit R12m -73%

• Difficult 6 months

• Substantial order received

• Major increase in revenue and earnings FY03+

• Excellent prospects to grow order book

Electrical Engineering

• Revenue R268,9m +46%• Operating profit R41,9m +39%• CBI

– 26% revenue growth from Mitsubishi product range– 71% from exports– Mitsubishi & meter products lower margins than

traditional CBI products

• Export to Europe, USA, Africa & Far East

0%

10%

20%

30%

96 97 98 99 00 01 02

Ratio

ExcludingAcquisitionsTotal

CBI Ratio Export/Total Sales

Cables

• Revenue R295,6m +1%

• Operating profit R6,0m -82%

Reunert38.6%

Marconi50.9%

Pirelli10.5%

ATC

Reunert50.0%

Pirelli50.0%

African Cables

Cables

• African Cables– Performance continued– Gaining market share– Improved efficiencies– Strong order book

• BEE

Domestic demand

18%

21%

25%

27%

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1999 2000 2001 2002

Rb

n

15%

17%

19%

21%

23%

25%

27%

29%

%

Total market % Market share

African Cables

Cables

• ATC– Sporadic copper demand – Weak demand for optical fibre continues– Restructured business to reduce costs

• No short-term improvement expected

Issues & Prospects

Black Economic Empowerment

• Equity participation– Subsidiaries– Reunert– Franchisees

• Expected Revenue of R95m by Sept 02

• Employment equity– Agreed plans in place – Focus on senior management & professional level

Black Economic Empowerment

Community involvement– Reunert College

• 400+ Students since 1993• Maths, Science & English

– Outsourcing & subcontracting

Prospects

• Continued strong growth for 2nd half expected

Thank youQuestions

Shareholding

Equity

• Shares in issue– In issue 204 060 264– Shares held by subsidiary 17 168 058 – No additional shares bought back since May 2001– AGM approval

• Ave value traded R19,7m/week

Major institutional shareholders

OMAM

RMB

InvestecReunert

Stanlib

Coronation

Franklin Templeton

Sanlam IM

BOE AM

Other holdings