Transcript Reutech Budget Presentation

Reutech
Investors’ day presentation
26 September 2007
Piet Smit
This could be a “normal” business – if the timing is right!
Information Brief to the
Portfolio Committee on Defence
Department of Defence’s
2007/08 MTEF budget
(Vote 20).
Presented by
Mr B.J. Engelbrecht
Director Budgeting
Defence
Department of Defence
3
DOD
Budget
Analysis
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Defence as % of GDP
Defence as % of Gov Expenditure
•Declined from 15,5% of GE (1989) to projected 4,4% in 2009
•Declined from 4,4% of GDP (1989) to projected 1,2% in 2009
Defence
Department of Defence
60%
DOD HR
BUDGET
50%
Integration
40%
30%
20%
Strategic
Defence
Procurement
Programme
10%
0%
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Personnel Budget
Operating Budget
Armament Acquisition Budget
•Budget principle – (HR Commitment)
•19% (89) → 58% (98) → 35% (02) → projected 40% (09)
•Changes to accounting policy – impact
•MSDS policy impact
•Impact of incentive schemes
Defence
•Perception
Department of Defence
SA Defence Spending – 15 year overview
1.9bn
4.9bn
AMD PRESENTATION
TO THE PARLIAMENTARY PORTFOLIO
COMMITTEE ON DEFENCE:
26 JUNE 2007
by Simphiwe Hamilton, Executive Director – AMD
A STRONG DEMOCRACY NEEDS THE SUPPORT OF A STRONG DEFENCE INDUSTRY
SADRI MEMBERSHIP IN AMD
The South African Defence Related Industries (SADRI) is a cluster of those
organisations in the South African Private and Public Sector which are directly or
indirectly involved in activities related to the industrial and trade processes of
defence related materials, goods and services.
CLASS A COMPANIES [Yearly Turnover More Than R250M]
Land Systems OMC
TOTAL 42
CLASS C & D COMPANIES [R10M<Yearly Turnover<R50M]
CLASS E & SPECIAL MEMBERS
[Yearly Turnover less than R10M]
ASSOCIATE MEMBERS
[Vested Defence Interest]
AMD REPRESENTS 92% & 97% OF DEFENCE TURNOVER & EXPORTS RESPECTIVELY (2005).
Members of AMD
CLASS B COMPANIES [R50M<Yearly Turnover<R250M]
Products and Services – RDL Technologies
RDL Technologies
– Logistic Engineering
– Supply, Support and
Maintenance
– Weapon Systems
– Saco Systems
20
number of products
•
RDL
10
> 10
> 100
> 100,000
local market share
export market share
number of units per annum
75
25
% export turnover
75
25
% local turnover
Products and Services – RDI Communications
•
number of products
20
RDL
10
> 10
> 100
RDI Communications
– Tactical Military Radio
• Airborne
• Ground based
> 100,000
local market share
export market share
number of units per annum
75
25
75
25
RDI
% export turnover
% local turnover
local market share
export market share
Products and Services – Reutech Radar Systems
75
25
75
25
RDI
% export turnover
Reutech Radar Systems
– Radar Systems
• Land based
• Ship borne
– Mining Products
20
number of products
•
% local turnover
RDL
10
RRS
> 10
> 100
> 100,000
number of units per annum
RRS – Movement and Surveying Radar
•
Reutech Radar Systems
– Radar Systems
• Land based
• Ship borne
– Mining Products
75
Fuchs
25
local market share
export market share
Products and Services – Fuchs Electronics
25
RDI
% export turnover
% local turnover
20
number of products
75
•
RDL
10
RRS
> 10
> 100
> 100,000
number of units per annum
Fuchs Electronics
– Electronic fuzes
• Rocket, Artillery, Mortar,
Naval, Air Weapons
– Air Weapons
– Handset repairs
Fuchs Electronics – Nokia Repair Centre
•
Fuchs Electronics
– Electronic fuzes
• Rocket, Artillery, Mortar,
Naval, Air Weapons
– Air Weapons
– Handset repairs
This is Reutech today ….. but what about the future ?
Average
Max
330
465
655
Export
75
175
345
Local
255
290
340
PBIT
4
57
119
Turnover
20
number of products
Min
RDL
10
RRS
> 10
75
Fuchs
25
75
25
RDI
% export turnover
> 100,000
number of units per annum
local market share
export market share
financial history from 2002
> 100
% local turnover
Reutech
Investors’ day presentation
26 September 2007