Reunert Limited · JSE:RLO
Reunert — Investor Day (August 2008)
20 slides from Reunert's investor day presentation, August 2008
Slide 1: Investors Day – Mark Taylor
INVESTORS DAY Mark Taylor August 2008
Slide 2: Overview of Nashua Mobile
Overview of Nashua Mobile • Under 700,000 customers • Nashua Mobile Internet – now over 7,500 Email customers • Over 80,000 broad band users • Move towards Total Communications Provider continues • BEE Status – Currently BB, aiming for A (Dec’08)
Slide 3: The Nashua Mobile Way
The Nashua Mobile Way Vision Nashua Mobile’s vision is to be a leading communications service provider by / through offering ultimate customer choice. Mission To achieve our vision, we need to: – Create a strong Employer Brand to attract and retain competent staff – Build and maintain excellent rela
Slide 4: Nashua Mobile 5 Year Strategy
Nashua Mobile 5 Year Strategy
Slide 5: Overview of Nashua Mobile
Overview of Nashua Mobile Business Retail & LCR Broadband Strategic Franchise Channels •National •160 Stores •Cellular LCR Connectivity: Categories •Over 160 staff •Approx. 2,500 •National LCR •Wireless -3G, •Onbillers •5 Regional staff working in •International LCR HSPA, •Loyalty Offices outlets •P
Slide 6: Marketing Focus
Marketing Focus • Host of new and exciting products – Voice and data – new tariffs and offerings all the time – Rate of change (shortened life cycle) • Pricing remains key driver in highly competitive market • Distribution network continues to expand • Ongoing marketing and communications across all
Slide 7: Sales and Upgrade Analysis
Fight Intoret-tessness! aan Internet Sales and Uperade Analysis 25,000 20,000 | /\ 15,000 10,000 ——, \ / sooo oo EOS _/ Ss s Ss s ee SS . e s ee & < & —Sales —Disconnections —Upgrades
Slide 8: SA Cellular Market (as at 31 March 2008)
SA Cellular Market (as at 31 March 2008) 2007 (Millions) 2008 (Millions) Network Total Market Postpaid Network Total Market Postpaid Vodacom 24.5 3.2 Vodacom 24.7 3.5 MTN 13.6 2.2 MTN 15.2 2.6 Cell C 3.6 1.2 Cell C 5.4 1.4 Total 41.7 6.6 Total 45.3 7.5 Nashua Mobile Contract Base (31/3/2008) Network
Slide 9: Industry Postpaid ARPU Analysis
Industry Postpaid ARPU Analysis 2005 2006 2007 2008 MTN** R 576 R 487 R 396 R 406 Vodacom R 624 R 572 R 517 R 486 Nashua Mobile* R 521 R 488 R 447 R 510 *Nashua Mobile ARPU Excludes Incoming Call Revenue (Estimated to be 30% of network ARPU’s) ** MTN 2008 YTD Figure only for period Jan – Mar Cell C
Slide 10: Nashua Mobile ARPU Analysis
Nashua Mobile ARPU Analysis R 2,000 R 1,600 R 1,200 Handset R 800 LCR R 400 R0 2005 2006 2007 2008 YTD
Slide 11: LCR Annual Turnover Comparison
LCR Annual Turnover Comparison Reporting Date R Million Nashua Mobile 30/09/2007 796 Vox 31/08/2007 748 Huge Group 29/02/2008 243 Telemasters 30/09/2007 151 Based on latest reported annualised figures
Slide 12: The Future of Least Cost Routing
The Future of Least Cost Routing • The arbitrage opportunity between fixed-mobile and mobile-mobile calls will continue to exist • Lack of infrastructure negates any cannibalisation threat from VOIP for the timebeing • Digital routing technology will allow for more sophisticated routing options to b
Slide 13: Industry News
Industry News • Vodacom – Changes to executive management – Launch of Vodacom Business – • Neotel – Finally taking both corporate and retail products to market – Investing heavily in fiber network • MTN – Purchase of Verizon business cements their 1st tier ISP status – Continue to focus on internati
Slide 14: Industry News
Industry News • Cell C – Declares an operating profit – Strong growth in lower LSM markets • Telkom – Still looking for a suitor – Disposal of Vodacom will unlock value and also allow Telkom to pursue Fixed-Mobile convergence model • Mweb – For sale by Naspers
Slide 15: Broadband Internet Access 2007 - 2012
Broadband Internet Access 2007 - 2012 Source BTI-T
Slide 16: Broadband Market Forecast
Broadband Market Forecast • Market Estimated to be 1.2 Million subscribers at the end of 2008, growing to 3.3 Million subscribers in 2012 • Dial-up market will continue to shrink • Seacom and Eassy undersea cables will greatly increase bandwidth availability (2Tb/s) whilst resulting in a decrease in
Slide 17: Voice Trends
Voice Trends • Voice growth reaching a plateau • Tougher economic conditions – Bad debts on the rise – Lower sales and spend – Implementation of call-limits across all consumers to negate risk • New ICASA rulings on handset subsidies • Consumer protection bill
Slide 18: Bad Debt as a % of Revenue
Bad Debt as a % of Revenue 2.00% 1.50% 1.00% 0.50% 0.00% 2005 2006 2007 2008 F 2009 B 2010 F Actuals Forecast
Slide 19: Data Trends
Data Trends • Exponential growth in data connections and revenue continues • ADSL adoption increasing, with bundled options becoming the norm • Download speeds increase to 7.2 Mbs • Triple play now only restricted by international back-haul and content-rights issues and Local Loop
Slide 20: Into the Future
Into the Future • Continue to position Nashua Mobile as a Total Communications Provider • Re-focus on core business • Extend retail distribution • Invest in customer-centric systems • Develop new products and services to cater for new converged world