chris oliver 23 august 2007. agenda overview of cbi market driving forces strategic issues
TRANSCRIPT
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
Min
iatu
re
Circu
it Bre
ake
rs
Mould
ed C
ase
Circu
it B
reake
rs
Earth
Leaka
ge P
rote
ction
Ele
ctricityM
ete
ring
Ready/D
istributio
n B
oard
s
Surg
e P
rote
ction
Device
s
Wirin
g A
ccesso
ries
Auto
matio
nEquip
ment
Moto
r Contro
lG
ear
Residential x x x x x x
Commercial 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
OEM x x
Manufactured Traded
SALES MIX
0
20
40
60
80
100
120
140
160
180
2004 2005 2006
2003 Base = 100
ResidentialCom/IndMining
Industrial 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
%Australia
Far East
North America
Europe
Africa
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
ResidentialBuildings
Non-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