Reunert Limited · JSE:RLO
Reunert — Investor Presentation (July 2005)
15 slides from Reunert's investor presentation, July 2005
Slide 1: Nashua Mobile
Nashua Mobile July 2005 www.nashuamobile.com NASHUA MOBILE All the PHONES « All the NETWORKS « All the TARIFFS « All the TIME
Slide 2: Overview
OVERVIEW • 11 year old company (started with MTN in 1994) • MTA activity to Nashua Mobile • Over 400 000 customers • Positioning - Focused on contract market (11% market share) - Balance between corporate and other high value users - Ultimate choice and advice - Impartial, honest, expert broker - “A
Slide 3: Interesting Statistics
INTERESTING STATISTICS Our people • Staff complement – 655 people (incl. temps and contractors) • Empowerdex process on track • Vision and Values – strong culture • Active social responsibility programme • Adopted 2 schools (750 children fed daily and have tracksuits) • 1200 items (foods, toys, clot
Slide 4: Key Indicators
KEY INDICATORS Key Indicators 2003 (ACT) 2004 (ACT) Turnover R2.01bn R2.37bn ARPU R549 R538 Gross sales 70 804 87 025 Upgrades 74 000 87 013 Churn 13% 11% Base 313 185 361 491 Handsets moved 141 808 171 317 Calls taken by Client Care 467 037 718 496
Slide 5: Overview - Credit and Operations
OVERVIEW - CREDIT Overview - Operations 2003 2003 2004 2005 2004(EST) Insurance Customers Debit order accounts 35 000 123 37000000 48 000 143 000 Customers Debit orderpaying rejections 138 000559 161 000 386 181 000 itemised billing Bad debt 0.60% 0.56% Customers paying CLI 76 000 119 000 160 000 Cu
Slide 6: Industry Developments – Risks and Opportunities
INDUSTRY DEVELOPMENTS – RISKS AND OPPORTUNITIES • Decreasing ARPU, as more lower-spend users get attracted (conversion from pre- paid and sale of hybrid packages). • Mobile number portability, and the potential of increased churn. • A change (decrease) in handset subsidies, and an associated slowing
Slide 7: Industry Developments – Risks and Opportunities
INDUSTRYDEVELOPMENTS DEVELOPMENTS––RISKS RISKSAND ANDOPPORTUNITIES OPPORTUNITIES INDUSTRY • The growth in data services and sales (3G, Blackberry etc), and an even greater move towards technology convergence. • Autopage becoming a Mobile Virtual Network Operator, and repositioning itself to compete
Slide 8: Least Cost Routing
LEAST COST ROUTING •The year 2004 / 2005 has shown a slowing of least cost routing. Least Cost Routing Actual 2003 / 2004 Sales 8 818 Number of Dealers 114 ARPU R1 628 (per month) Turnover R619 mil (per annum) Base (Oct 2004) 31 673
Slide 9: Least Cost Routing
Least CostLEAST RoutingCOST ROUTING • The year 2004 / 2005 has shown a slowing of least cost routing. Major Customers There •Sentech are many reasons why the growth did not exceed expected projections •Direct Channel Marketing • Increased •Pick ʼn Pay margins from opposition to the dealers. • Voice o
Slide 10: Telemetry
TELEMETRY • The year 2004 / 2005 has shown an increased interest in the procurement of telemetry based solutions. Telemetry Actual 2003 / 2004 Sales 4 393 Number of Dealers 5 ARPU (Oct 2004) R206 (per month) Turnover R71 mil (per annum) Base (Oct 2004) 28 537 • The excellent figures can be attribute
Slide 11: Overview Business Unit Strategy
OVERVIEW BUSINESS UNIT STRATEGY Corporate Specialised Retail & Services Franchise • Retail - Increase physical footprint - Different distribution models - Flagship Sandton store • Corporate - Our traditional strength & - Increasingly competitive area (increased discounts, network focus, integrated s
Slide 12: Future: Will ISPs Continue to Exist
FUTURE Retail Will ISP’s Will ISP’s continue continue to existto exist •• Irrespective Irrespective of the changes in the Connectivity arena, ISP’s will continue to offer specialised services: of the changes in the connectivity arena, ISP’s will continue to offer •VPN’s specialised services: •Corpor
Slide 13: Future: Number Portability
FUTURE • Number portability • Will unlikely have an impact on Nashua Mobile • It will be an opportunity to strengthen our relationship with the Networks • Nashua Mobile will not compete with the Networks, and will not become a Mobile Virtual Network Operator in the foreseeable future.
Slide 14: Marketing Statistics
MARKETING STATISTICS Interesting Statistics • Marketing Aggressive, continuous marketing activities (blend of corporate and retail message). • Aggressive, continous marketing activities (blend of corporate and retail message). • •Placed thefollowing Placed the following advertisements advertisements
Slide 15: Marketing Statistics
MARKETING STATISTICS • Pricing • 3 Networks • 10 Handset manufacturers • 55 Current models • 68 Tariffs • 101 Specials • 7052 Pricing options • Products • Constant development and evaluation of new products and services e.g. rise in data, convergence, etc. • Customer Intelligence • Greater focus on