W ORLD CLASS MANUFACTURER OF C OPPER AND O PTICAL F IBRE C OMMUNICATION C ABLES AND C ABLE A...

WORLD CLASS MANUFACTURER OF COPPER AND OPTICAL FIBRE

COMMUNICATION CABLES AND CABLE ACCESSORIES

INVESTOR PRESENTATION INVESTOR PRESENTATION 30 JULY 200830 JULY 2008

Koos VorsterKoos Vorster

AGENDA

STRUCTURE AND SHAREHOLDING

FACILITIES

PRODUCT OVERVIEW

MARKET

GROWTH PROSPECTS

QUESTIONS

SHAREHOLDING

Aberdare Cables(Pty) Ltd

Izingwe Aberdare Cable

Investments(Pty) Ltd

Allied ElectronicsCorporation

Limited(ALTRON)

CBI Electric:Aberdare ATC

Telecom Cables(Pty) Ltd

IncorporatingLambda Cables

REUNERT LIMITED

PowerhouseUtilities(Pty) Ltd

ATC (Pty) Ltd

50% 50%

74,9% 25,1% 30%70%

EFFECTIVE BEE SHAREHOLDING 30.35%

FACILITIES

BRITS FACILITYAREAS

Site Area 12.2 ha

Manufacturing 29,437 m²

Copper Capacity 2,500,000 Kcm

Fibre Capacity 1,200,000 Fkm

ROSSLYN FACILITY

AREAS

Site Area 5,8 ha

Factory 12,000 m²

Data Capacity 72,000,000m

COPPER CABLE PRODUCT RANGE

COPPER CABLE

TELECOMMUNICATION CABLE

• INDOOR

• OUTDOOR (AERIAL & UNDERGROUND)

• DSLAM

• PCM

• DROP WIRE

INDUSTRIAL CABLE

• INSTRUMENTATION AND CONTROL

• PILOT AND SIGNALING

• DATA AND UTP

• SPECIALISED, e.g. Leaky Feeder Coaxial

• STEEL WIRE ARMOURED

• UVG CABLE

LAMBDA PRODUCT RANGE

DATA

UTP Cat 5e (solid and flex)

FTP Cat 5e

UTP Cat 6

(Solid & Flex)

TELECOMS UP TO 50 PAIR

MYLAR (SCREENED TELECOM)

FIRE ALARM CABLE

DOWN LINE WIRE (EXPLOSIVES MARKET)

UVG INSTRUMENTATION CABLE

OPTICAL FIBRE CABLE PRODUCT RANGE

OPTICAL FIBRE CABLE

INDOOR CABLE

• TAIL CABLE

• BREAKOUT CABLE

• DISTRIBUTION CABLE

OUTDOOR / UNDERGROUND CABLE

• DUCT TYPE CABLES

• ARMOURED & RODENT PROTECTED

• AERIAL CABLE (RURAL, SHORT,

MEDIUM AND LONG SPAN)

SPECIALISED/INDUSTRIAL USE

• INSTRUMENTATION

• MINESHAFT

• FIELD DEPLOYABLE

• COMPOSITE CABLES

CABLE ACCESSORIES

CABLE ACCESSORIES PRODUCT RANGE

OPTICAL FIBRE CABLE ASSEMBLIES

OPTICAL FIBRE AND COPPER CABLE

JOINT CLOSURES

OPTICAL FIBRE CABLE SLACK

BINS

UTPCABLE

ASSEMBLIES

CUSTOMER BASE

TELECOM NETWORKS

• FIXED LINE OPERATORS• TELKOM /NEOTEL

• MOBILE OPERATORS• MTN/VODACOM

• OTHER - INFRACO• EXPORTS

POWER UTILITIES AND TRANSPORT

• ESKOM• SPOORNET• TRANSNET• SARCC/METRO RAIL

CITY COUNCILS/METROS

MINES

• GOLD• PLATINUM• DIAMOND• COAL

PROCESS MARKET

• PETROCHEMICAL• PAPER AND PULP

MIDDLE EAST• PETROLEUM DEVELOPMENT OMAN• SAUDI ARAMCO

DATA MARKET

• OEM’S

LARGE AND DIVERSE

MARKET BOTH LOCALLY AND

ABROAD

MARKET

Estimated Market Size per Market Segment - R1.524bn per annum

Teleco59%

Non Telco41%

The estimated market that CBI is targeting in South Africa is R 1.5bn

Estimated Imported Cable into this market for the year 2007 was

Copper cable R 123mil

Fibre Cable R 54mil

Major export market for CBI is East and West Africa, SADEC and Middle East

Estimated Market Size per Market Segment - R1.524bn per annum

Copper Cable60%

Fibre Cable40%

MARKET BREAKDOWN-TELKOM VS NON TELKOM

MARKET BREAKDOWN-TELKOM VS NON TELKOM

16%

42%

42%

TELKOMNON TELKOMEXPORT

HISTORICAL TELKOM DEPENDENCE

2005/6

CURRENT OUTLOOK

11%

24%

65%

TELKOMNON TELKOMEXPORT

BASE YEAR INDEX 100 OUTLOOK INDEX 200

PRODUCT BREAKDOWNPRODUCT BREAKDOWN

HISTORICAL PRODUCT MIX

CURRENT OUTLOOK

3%17%

80%

Copper Fibre Access

3%

31%

66%

Copper Fibre Access

TRUNK Network LOCAL LOOP Network

Central Office Local ExchangeStreet cabinet

Rural

Residential

Corporate

SME’s

Central Office

High Cu Pr CableMedium

Cu Pr Cable Low Cu Pr Cable

Medium Cu Pr Cable

Coax Cu Cable /Microwave /

OFC

TYPICAL NETWORK PRE TECHNOLOGY MIGRATION

ACCESS Network

National / Metro Network

Central Office Local ExchangeStreet cabinet

Rural

Residential

Corporate

SME’s

Central Office

OFCOFC

WiMaxOFC WiMax

High Cu Theft

xDSL Ready

Cu Cable

TYPICAL NETWORK POST TECHNOLOGY MIGRATION

SOUTH AFRICA TELKOM SA – Remains major user - maintenance and ADSL

ESKOM – R343bn Capex to 2013. De-mothballing and new power stations

INSTRUMENTATION CABLE – Local MEGA PROJECTS on the horizon –

SASOL4; PETRO SA RAIL NETWORK - Commuter and Freight

GAUTRAIN

EXPORTS MIDDLE EAST Petro - Chemical

MEED Report $59,2bn - under evaluation

AFRICA – Natural resource development Oil and Mining

MARKET GROWTH AREAS

COPPER

0

20

40

60

80

100

120

140

160

180

2002/3 2003/4 2004/5 2005/6 2006/7 2007/8

TELKOM USEAGE COPPER

Kcm’s ‘1000

NON TELECO COPPER GROWTH

NON TELECO

0

50

100

150

200

250

300

350

400

450

2005/6 2006/7 2007/8 2008/9

BASE YR 100

EXPORT GROWTHEXPORT GROWTH

EXPORTS

0

100

200

300

400

500

600

2004/5 2005/6 2006/7 2007/8 2008/9

BASE YR 100

SOUTH AFRICA

TELKOM SA – Balance of 5yr CapexR13,3bn

Deep Fibre Deployment Access

NEOTEL – Metro/Access Long haul National

MTN / VODACOM – Self Provisioning Long haul

SARCC METRO RAIL – Modernise Comms Network [Copper to Fibre]

EXPORT

PROPOSED SUBMARINE CABLE NETWORKS WILL STIMULATE PAN AFRICAN

FIBRE DEMAND

MARKET GROWTH AREASFIBRE

FIBRE MARKET

FIBRE VOLUME

0

50

100

150

200

250

300

350

400

450

2005/6 2006/7 2007/8 2008/9

BASE YR 100

England

South Africa

SAT-1 / SAT -2

Lisbon

Senegal

1 234561 – Cote d’Ivoire2 – Ghana3 – Benin4 – Nigeria5 – Cameroon6 – Gabon

Angola

SAT-3 / WASC

South Africa

France

Egypt India

SEAMEWE

South Africa

Mauritius

Malaysia / India

SAFE

MozambiqueMadagascar

TanzaniaKenya

SEACOM

Djibouti

South Africa

France

Egypt India

Current / Build In-progress Pan African Submarine Cables

AWCC

EASSY

Current / Build In-progress Pan African Submarine Cables