Chris Oliver
23 August 2007
AGENDA
• Overview of CBI
• Market Driving Forces
• Strategic Issues
OVERVIEW OF CBI
Johannesburg
Thaboqwa
Assembly Plants
Hyqwa
Lesotho 1Hylesedi
Lesotho 2
PRODUCT/MARKET MIX
Market Segment
Miniature
Circuit Breakers
Moulded Case Circuit
Breakers
Earth Leakage Protection
ElectricityM
etering
Ready/Distribution Boards
Surge ProtectionDevices
Wiring Accessories
Automation
Equipment
Motor Control
Gear
Residential x x x x x xCommercial x x x x x xMining x x x x xUtilities x x x xIndustrial x x x x x x xOEM x x
Manufactured Traded
SALES MIX
0
2040
60
80100
120
140160
180
2004 2005 2006
2003 Base = 100
ResidentialCom/IndMiningIndustrial ControlsUtilityExport
EXPORT/TOTAL SALES
0%
10%
20%
30%
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
Ratio
Export Sales by Region
0%
20%
40%
60%
80%
100%
2004 2005 2006
%AustraliaFar EastNorth AmericaEuropeAfrica
MARKET DRIVING FORCES
RESIDENTIAL
• Building plans completed• Building plans passed• Other suppliers are Clipsal, Schneider,
Crabtree, ABB, Chint, MES, MCE etc.• Low cost of Chinese products• Suppliers of Chinese products in major centres• Banks become major players in low cost
housing• CBI products are widely available
BUILDING PLANS COMPLETEDSeasonally Adjusted at constant 2000 prices
0
200
400
600
800
1000
1200
1400
1600
1800
J06
F M A M J J A S O N D J07
F M A M
R mio
ResidentialBuildings
Non-ResidentialBuildings
Additions andAlterations
BUILDING PLANS PASSEDSeasonally Adjusted at constant 2000 prices
0
500
1000
1500
2000
2500
3000
J06
F M A M J J A S O N D J07
F M A M
R mio
ResidentialBuildingsNon-ResidentialBuildingsAdditions andAlterations
MARKET TRENDS RESIDENTIAL
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006 O N D J 07 F M A M J J
Index (2001 =100)
Sales (ppd)
Building Plans
INDUSTRIAL and MINING
• Commodity prices lower but still high• Project commitment remains strong• Skills shortages for large projects• Capacity of local suppliers to supply turn
key projects• Imports of capital equipment and
associated circuit breakers
UTILITIES
• Slowdown in electrification due to electricity supply capacity limitations
• Erratic nature of metering orders and impact on industry
• Survival pricing models of metering competitors• Eskom capital projects outstrips local capacity• Declared preference for turn-key projects• LV Circuit breakers disappear in enormity of projects• LV circuit breakers will accompany international
turn-key project suppliers
EXPORT
• Capital constraints limits export business consistency in Africa
• Industrialised countries moving their manufacturing to low labour cost areas i.e. China, Vietnam, India etc.
• Telecom, railway signalling and distribution protection remains the main market segments
STRATEGIC ISSUES
• Lower cost of manufacturing by– Rationalising product range– Reducing input costs
• Grow sales by– Strengthening distribution channel– More intelligent marketing– By insuring adequate supply of product
Q’s & A’s