A N N U A L   R E P O R T   –   2 0 0 3
Highlights Accounting policies
Letter to shareholders Income statements
Board and governance structure Balance sheets
Group overview Cash flow statements
Building and developing people Notes to the cash flow statements
Corporate governance Statement of changes in equity
Value added statement Notes to the annual financial statements
Segmental analysis Principal subsidiaries
Five-year financial review Share ownership analysis
Summary of statistics Shareholders' diary
Definitions Corporate administration and information
Directors' responsibility Notice of annual general meeting
Report of the independent auditors Currency conversion table
Secretaries' certification Proxy form
Statutory information

Reunert Limited is listed on the JSE Securities Exchange South Africa (JSE) under General Industrials in the electronic and electrical equipment sector. It manages a group of ten core businesses focused on electronics and electrical engineering. Established in 1888 by pioneers Theodore Reunert and Otto Lenz, the group has played a major role in the South African economy for more than a century and its products are leaders in the various markets its serves.

Originally listed in the engineering sector of the JSE in 1948, the company was acquired by Barlow Rand in 1980 and listed on the electronics sector three years later. Reunert was unbundled from Barlow Rand in 1993. Today, Reunert is represented through its different operations in electrical engineering and cables, office automation solutions, consumer and commercial products and services, defence electronics, and information and communication technologies.

Reunert’s turnover in 2003 exceeded R6 billion, which was achieved by serving local and international markets. Reunert has over 4 900 employees, most of whom are qualified and experienced engineers, technicians, research and development professionals and field support staff.

Circuit Breaker Industries (CBI) is the market leader in the manufacture and supply of low-voltage switchgear for electrical installation protection and earth leakage protection and a world leader in the field of hydraulic-magnetic circuit breaker and electronic earth leakage technology. CBI offers a wide range of metering solutions, including prepayment meters. The company entered the field of surge and lightning protection after acquiring L&T Surge in 2001. CBI has exclusive distribution rights for Mitsubishi motor control gear and factory automation equipment in sub-Saharan Africa.

Export sales account for 22% of the manufactured products. The target is to increase international sales to 25% of production in the 2004 financial year. CBI has registered its trademarks in several countries where business prospects are pursued. More than 90% of sales of manufactured products originate from technology developed and owned by CBI. Brand names include Hy-Mag, Ecolec, Samite and Fuchs.

The head office and component manufacturing operations are based at Johannesburg. The company has three assembly plants at Qwa Qwa in the Free State and service branches in Cape Town, Durban, Bloemfontein and Port Elizabeth. CBI sales offices in Europe and the United States complement these operations. CBI employs 1 379 people.

Reunert took complete ownership of ATC after acquiring the 50,9% shareholding held by Marconi Communications and the 10,5% stake held by Pirelli Cables and Systems. As part of its black economic empowerment drive, a 25,1% shareholding was sold to Kgorong Investment Holdings.

ATC was founded in 1955 by a group of British cable manufacturers as African Telephone Cables. Its factory and head office, based at Brits, north west of Johannesburg, was established in 1972.

ATC specialises in the manufacture of copper and optical fibre telecommunication cable for public network operators. The company also manufactures an impressive range of measurement, instrumentation, control, data and security cables for use in commerce and industry. The company employs 368 people.

Koos Vorster (54)
First employed by ATC in 1971

African Cables is one of the forerunners in the South African cable industry and is engaged in the design, development, manufacture and installation of insulated power cables. Pirelli Cables and Systems, holding a 50% share, is the company’s international technology partner. The company is based at Vereeniging in Gauteng and employs 575 people.

African Cables holds a 73% share in Cafca, a Zimbabwean cable manufacturer. The company is listed on the Zimbabwe Stock Exchange in
Harare, the JSE and the London Stock Exchange.

MANAGING DIRECTOR: African Cables Limited
Ernst Schutte (54)
BSc Eng (Elec)
With the Reunert group since 1999

The advancement of digital technology has enabled Nashua Limited to provide document storage, transmission and printing solutions in a networked environment. Products are value added and include such respected international brands as Ricoh. Nashua is a leading supplier of office automation products, including digital and analogue photocopiers, facsimile machines, laser printers and consumables such as paper and toner. After acquiring Royce Imaging, Nashua entered the refilled ink cartridge market.

Nashua has recently introduced new-generation software solutions designed to increase the productivity of managing document flow.

Nashua has a well-established network of 56 franchises in South Africa, Namibia, Swaziland, Lesotho, Botswana, Zimbabwe and Zambia. Major customers account for 96 of the Financial Mail’s top 100 companies. Nashua employs 350 people at its Midrand head office in Gauteng.

RC&C Finance Company, trading as Nashua Finance, provides asset-based financial services to Nashua, Panasonic and Siemens Telecommunications customers. Based at Midrand in Gauteng, the company employs 41 people, and is managed by Mike Purnell (40), CA(SA).

Nashua Connect provides digital solutions arising from the convergence of technology. Established in July 2000 the company provides information technology (IT) solutions in specialist areas, including mobile services, technical services and enterprise content management services.

Nashua Connect adds technology competence to Nashua and Nashua Mobile and offers IT services to other Reunert subsidiaries. Other key customers include some of the largest financial institutions in South Africa. The company employs 53 people. The company is managed by Gustav Vermaas (37), BCom, ACMA (UK).

Nashua Mobile is one of South Africa’s leading independent cellular telephony service providers, marketing and selling the cellular offerings of all three South African network operators, Vodacom, MTN and Cell C. Nashua Mobile’s main focus is on providing cellular services to business and high airtime users. In addition, Nashua Mobile continues to develop and market products and services designed both to improve the communications abilities of customers and to reduce their expenditure. With the convergence of voice, data and multi-media Nashua Mobile is ideally positioned to enhance its total communications service offering.

Nashua Mobile’s customers are serviced through an extensive network of more than 150 touchpoints, consisting of regional offices, franchises and dealers throughout South Africa. Nashua Mobile has grown its base to more than 350 000 subscribers. The company employs 576 people and its head office is based at Midrand in Gauteng. Nashua Mobile was voted one of South Africa’s best companies to work for in the Finance Week and Corporate Research Foundation survey.
Reunert Consumer and Commercial Holdings is the exclusive importer and distributor of such well known brands as Panasonic and Technics in southern Africa. Recent additions to the product offering are Futronic and Nintendo. Futronic is targeting the value-for-money, entry-level consumer electronics market, whereas Nintendo is the exclusive distributor of Nintendo Games hardware and software.

The consumer is thus offered a wide range of products such as television sets, hi-fi equipment, digital cameras, interactive entertainment products, home appliances and gaming products from the foremost international manufacturers.

A comprehensive range of business systems products such as office automation equipment, telecommunications products and systems, broadcasting and security systems and air conditioning units are also available for a variety of commercial applications.

Most of the products used are leading-edge technology products from Matsushita Electric Industrial Corporation (MEI), supplemented, where required, by third-party products or technologies. All products are distributed through major chain stores, discounters, franchises, independent buying groups and specialised dealers or directly through Panasonic Business Systems. The head office operations are based at Midrand in Gauteng. The company employs 794 people.

Commercial Holdings Limited
Martin Maddox (42)
BA Econ (Hons)
With the Reunert group since 1983


SACO Systems designs and supplies tag, track and trace solutions to a wide range of industries that need to track assets inside their companies or over a large geographical area. In addition, SACO combines access control, closed-circuit television (CCTV) technology and time-and-attendance systems in a single resource management solution. SACO is a dominant player in the southern African market and has made significant inroads into the British market for asset tracking and distribution management products.

During the past year, SACO continued to create customer awareness and further consolidate its position as that of market leader. Through sustained advertising, new industries and tagging opportunities have been identified.

Based at Midrand in Gauteng, the company employs 57 people.

Bill Reeler (49)
BSc Eng Elec (Hons)
With the Reunert group since 1981

Based at Stellenbosch in the Western Cape, with 10 employees at present, Acuo Technologies was established in February 2002. Acuo is a specialist software engineering company providing turnkey software system solutions and software system integration services for telecommunications and other markets. The company currently provides development services to Nashua Mobile and Reutech Radar Systems (among others), involving real-time software and remote management and monitoring, as well as transaction management systems. The company’s areas of expertise include Microsoft.NET, Biztalk, Java, J2EE and Linux.

GENERAL MANAGER: Acuo Technologies (Pty) Limited
Carl Kies (40)
Employed by the Reunert group from 1988 to 1993 and from 2002

Reunert holds a 40% stake in Siemens Telecommunications, while Siemens SA holds the remaining 60%.

Siemens Telecommunications is involved in information and communication technology (ICT).

The company is a leading supplier of fixed and mobile communication systems and infrastructure for telecommunications operators. It is a major supplier to Telkom and the second fixed-line network operator participant, Easitel. It is the principal supplier to Vodacom and Cell C. Siemens has the integration skills and the ability to design, install and commission both GSM and fixed networks to world-class standards.

In addition, Siemens is major supplier to several fixed line and mobile operators in the rest of sub- Saharan Africa, as well as the leading provider of corporate and enterprise networks.

CHIEF EXECUTIVE OFFICER: Siemens Telecommunications (Pty) Limited
Pete da Silva (44)
Dip Computer Science, Dip Light Current
With Siemens since 1977

Reunert acquired a strategic shareholding of 31,7% in CS Computer Services Holdings Limited after year-end. Worldwide African Investment Holdings, as black economic empowerment partner, holds 25% and management 6,5%. Institutional and retail investors hold the remainder of the shares.

CS Holdings is listed on the JSE in the Software Computer and Services Sector. CS offers its clients the full complement of integrated processes, technology and people business solutions through the services rendered by its three divisions, CS Systems Integration, CS IT Solutions and CS Education Solutions. The service offerings of these divisions are integrated and mutually supportive.

CHIEF EXECUTIVE OFFICER: CS Computer Services Holdings Limited
Annette van der Laan (41)
Founded CS in 1990

Fuchs Electronics develops and manufactures a wide range of electronic fusing systems. It is a world leader in modern electronic fusing for all tubelaunched ammunition rounds. Products include naval, artillery, mortar and rocket applications. More than 90% of the company’s revenue is generated through exports to Asia, Europe, South America and the Middle East. Fuchs Electronics owns the intellectual property of all the products it manufactures and markets. Based at Alberton in Gauteng, the company employs 262 people.

MANAGING DIRECTOR: Fuchs Electronics (Pty) Limited
Andreas Theodorou (54)
Dip Elec, Dip Datametrics
With the Reunert group since 1975

Reutech Defence Industries, located at New Germany in KwaZulu-Natal, designs and manufactures state-of-the-art, very-highfrequency (VHF) and ultra-high-frequency (UHF) tactical airborne and ground-based radio communication systems and electronic air weapon systems, specialising in high-tech fusing and pre-fragmentation warheads. The company employs 144 people.

MANAGING DIRECTOR: Reutech Defence Industries (Pty) Limited
Martin de Beer (38)
BSc Eng (Elec)
With the Reunert group since 1989

Reunert Defence Logistics (RDL) is a system engineering and support company. The company's services cover the entire spectrum of logistic support and management; the development and manufacture of gun and firecontrol systems for armoured vehicles and naval guns; and the supply and support of Alcatel carrier internet working equipment. Reunert Limited holds 70% and Kgorong Investment Holdings (Pty) Limited 30%. RDL is based at Midrand and has support facilities throughout South Africa. The company employs 221 people.

MANAGING DIRECTOR: Reunert Defence Logistics (Pty) Limited
Selwyn Newnes (46)
With the Reunert group since 1984

Reunert owns 57% of Reutech Radar Systems (RRS), while the European Aeronautic Defence and Space Company (EADS) has 33% and the remaining 10% is held by Kgorong Investment Holdings, a black-owned group. Based at Stellenbosch in the Western Cape, RRS specialises in ground based and ship-borne radar systems and is active in the air defence, air space control and air traffic control markets. Through a technology partnership with EADS, RRS products are incorporated into world-class systems. The company employs 88 people.

CHIEF EXECUTIVE OFFICER: Reutech Radar Systems (Pty) Limited
Piet Smit (41)
Appointed chief executive of the Reutech group
of companies effective 1 January 2004.
With the Reunert group since 1987

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