chris oliver 30 july 2008. agenda brief history business statement products facilities product...

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Chris Oliver 30 July 2008

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Chris Oliver

30 July 2008

Agenda

• Brief history• Business statement• Products• Facilities• Product market mix• Sales overview• Operational overview• Market drivers• General strategy

History

• Established in 1949 as a subsidiary of Heinemann Electric

Company US, the inventors of the hydraulic-magnetic circuit

breaker technology

• In 1957 we invented the world’s first high sensitivity Residual

Current Device commonly called an Earth Leakage Device

(RCD)

• In 1986 Fuchs Electrical Industries was acquired and merged

into a new company called Circuit Breaker Industries Ltd

• Only manufacturer of circuit breakers and residual current

devices in Southern Africa

BUSINESS DEFINITION

The supply of quality low voltage distribution-, protection- and control

equipment

PRODUCT/MARKET MIX

Market Segment

Min

iatu

re

Circu

it Bre

ake

rs

Earth

Leaka

ge P

rote

ction

Ele

ctricityM

ete

ring

Circu

it Bre

ake

rs for

Equip

ment

Surg

e P

rote

ction

Device

s

Mould

ed C

ase

Circu

it B

reake

rs

Wirin

g A

ccesso

ries

Industria

l Contro

lEquip

ment

Moto

r Contro

lEquip

ment

Residential x x x x x

Commercial x x x x x x x

Mining x x x x x

Utilities x x x x

Industrial x x x x x x x x

Original Equipment Manufacturer

x x x

Manufactured Traded

SALES MIX

0

100

200

300

400

500

600

700

800

900

2004 2005 2006 2007

2003 Base = 100

ExportUtilityIndustrial Controls

MiningCom/IndResidential

EXPORT/TOTAL SALES

0%

10%

20%

30%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Ratio

Export Sales by Region

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007

%Australia

Far East

North America

Europe

Africa

Operational Overview

• Positive contribution from CBI-electric Australia.

• Positive contribution from Industrial Controls. (Automation, Motor Control)

• Integration of Bolt-on acquisition (Moeller) completed.

• Benefit of lower cost assembly facility in Lesotho.

• Benefits from operational streamlining and re-sizing from Elandsfontein.

Local Market Issues

• Property/construction market is in decline. We are well positioned for this.

• Positive impact of commodity prices on mining industry and mining projects.

• Buoyancy in general industrial market.

• Expected growth in Industrial Control Market.

• CBI market share in Industrial Control Market.

• Outlook for the local market remains positive.

International Market Issues

• Telecommunication boom in Middle East and Far East.

• Importance of market presence in Africa.

• Status Quo maintained in neighbouring countries.

• Opportunities in Australia.

• Export volumes of manufactured products during June and July. (66% of manufactured products exported)

General Strategy

Lower cost of manufacturing by:• Complete rationalisation of product range.

• Continue reducing input costs across the board.

Grow sales by:• Increasing coverage and presence in Africa.• Adding value added services.• Capitalising on growth opportunities in Industrial

Control Market.• Increase exports of specialised protection products.

Maintain local market share.

Q’s & A’s