Helmuth Fischer CBI

Helmuth FischerCBI

6 June 2006

Johannesburg

Thaboqwa

Assembly Plants

Hyqwa

Lesotho 1

Hylesedi

Lesotho 2

Market Segments and Products

Market Segment

Min

iatu

re

Circu

it Bre

akers

Mou

lded

Case

Circu

it B

reakers

Earth

Leakag

e P

rote

ction

Ele

ctricityM

ete

ring

Wirin

g A

ccesso

ries

Su

rge P

rote

ction

Device

s

Ready B

oard

s

Auto

matio

nEq

uip

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

Ratio Export/Total Sales

0%

10%

20%

30%

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

Ratio

Export Sales by Region

0%

20%

40%

60%

80%

100%

2004 2005 2006 FC

%Australia

Far East

North America

Europe, ME

Africa

Total Revenue Mix 2001 and 2006

0%

20%

40%

60%

80%

100%

2001 2006 FC

Industrial

Residential

Circuit Breakers for Equipment

Regional Markets First World, in the main around industrial hubs. Developing countries do contract manufacturing. In these cases First World determines standards, designs,

specifications.

Products Technology of our products provides benefits to

customers. Due to this some standard products are used in CBE

applications. Typical CBE products allow a multitude of variations.

Circuit Breaker for EquipmentSales per Region

0

200

400

600

800

1000

1200

2000 2001 2002 2003 2004 2005 2006FC

Index (2000=100)

EuropeFar EastNorth America

CBE – Typical Market Segments

Application Region Market Share Demand

Low Voltage and decorative lighting

USA Dominant Steady

DC power supply for mobile telephone base stations, incl. G3

Germany

ScandinaviaSignificant

Remains high

(incl. China)

EL protection rolling stock UK Substantial Growing

Railway signalingChina

Eastern Europe

Dominant

new market

Steady

growing

Mobile generators Europe Small Steady

GDFI Forecast: Growth Building Industry (%)(Source: Bureau for Economic Research)

2003 2004 2005 2006 2007

Residential 9.9 10.6 19.3 10.5 6.9

Non-residential

4.4 10.5 7.1 10.4 8.8

Total 7.1 10.5 13.2 10.4 7.8

06.06.2006

Business Confidence Building Industry(Source: Bureau for Economic Research)

0

20

40

60

80

100

91q1 93q1 95q1 97q1 99q1 01q1 03q1 05q1

Residential Non-residential

Market Trends - Residential

2005 vs 2004: Increase in completed building plans of 50% in Flats and Town

Houses Decrease in dwellings <80m²

Real growth 11,8% p.a. in 2000-2005 Forecast 8% p.a. in 2006-2011

ESKOM rate of electrification has slowed down Capital spend

Electricity spend ESKOM and Municipalities R50bn to 2010 Housing National and Provincial R32bn to 2010 Example

N2 Gateway project (W/Cape): 22 000 houses, so far only 770 complete, all with CBI products

W/Cape MEC stated by Dec 2006 16000 houses and 22000 serviced sites will be complete

Market Trends – Mining

Local Commodity prices up Rand exchange rate positive Inflation remaining low Capital spend

Anglo American R36bn by 2009 Anglo Platinum R20bn by 2007 Impala Platinum R5bn by 2007

Export More mining activities accessible in Africa

Ghana, Namibia, Angola, Zambia

Market Trends – Commercial/Utilities

Local Real growth 2000-2005 3,9% p.a.

forecast 2006-2011 8,2% p.a. Capital spend until 2010

Examples Gautrain R20bn Sasol R12bn Midrand expansion R11bn Mittal R8bn ACSA R5bn

Export Congo Basin Hydro Electric Scheme 800MWatt 2012

Typical Electrification Project

KioskSwitchgear

Service Entry

Switchgear

WiringAccessories

PowerTransformer

DistributionTransformer

MiniSub-stationSwitchgear

KioskSwitchgear

KioskSwitchgear

ElectricityMeter

Prepayment/Conventional

DistributionBoardResidentialProducts

Residential Dwelling

Power Cable Power Cable Power Cable

Pow

er C

able

HouseWire

Service Entry

Switchgear

Service Entry

SwitchgearLighting

Production since 2000

0

50

100

150

200

99/00 00/01 01/02 02/03 03/04 04/05 05/06 YtD

Index (2000 = 100)

Production

Maximum Output

Current Capacity

Extra-ordinary Capex

2005/2006 2006/2007

Additional Capacity

R30 mio R40 mio

Mechanisation, Automation

R5 mio R20 mio

Yearly Imports Comparison%

China Germany France Italy Japan

(MAR - FEB)

0369

121518212427303336

2004/2005 2005/2006

Q&A