Presentation toReunert Investors

26 September 2007

Martin Maddox

Products and Services

PanasonicConsumer

Nashua Electronics

Manufacturing

Group Finance

Futronic

PanasonicBusiness Systems

Nashua ElectronicsE-commerce/Retail

•Finance and accounting•Warehousing and logistics•Parts•Service networks•Distribution Creditors and debtors management

•Brown goods•White goods•Batteries and media•Small appliances•Photographic•Air conditioning

•OA•Telecommunications•CCVE•Air conditioning•Presentation•IT Products +•Installation/Service/Reticulation/Support

•Brown goods•White goods•Small appliances•CCVE (Consumer)•Hardware

•Electronic consumer products (top brands)•Electronic Retail business products (top brands)•Delivery/Installation/Advice /Support

Nashua

•Air Conditioning

PanasonicSystems

•OA•Telecommunications•Broadcast•CCVE•Presentation•IT

Manufacturing

Distribution

Retail

Systems Business

Five business units

1. Office Automation & IT

2. Telecommunications

3. Presentation Systems

4. CCVE Systems

5. Broadcast Systems

Common Key Success Factors

1. Steep technological development curve (Digital Product)

2. Direct dedicated distribution

3. BEE requirement

4. Brand identity (distribution and consumer awareness)

5. Turnkey Solution

6. Critical importance of software/IT

7. Broadband / I.P. products

Major hurdles facing Distributors in the Consumer Electronics Industry

• Ease of entry to the market– Digital technology– Speed of R&D development– Transfer of technology

• Potential Market Slow Down– Interest Rates– Credit Bill / Controls– Slow down in housing boom

• Brand Premium Erosion• Management of Forex• Duty Evasion• New industry competition through product convergence

– I.T. Companies– Broadcasters

• Limited new Product developments• Price Erosion

Unit Price Erosion

0

102030405060708090

100

2003 2004 2005 2006 2007

DVC

DSC

Plasma

LCD

Major hurdles facing Distributors in the Consumer Electronics Industry

• Ease of entry to the market– Digital technology– Speed of R&D development– Transfer of technology

• Potential Market Slow Down– Interest Rates– Credit Bill / Controls– Slow down in housing boom

• Brand Premium Erosion• Management of Forex• Duty Evasion• New industry competition through product convergence

– I.T. Companies– Broadcasters

• Limited new Product developments• Price Erosion• Excessive logistics and warranty costs• Dominant power of retailer

Consolidation of key accounts

40

30

20

12

05

1015202530354045

1980 1990 2000 Current 2010

No. of Key Accounts

?

Key Accounts

J D GroupLewis StoresO K Furniture/ShopriteMassmartEllerine HoldingsMetcashPick ‘n PayIser GroupFurnex GroupSparGroup ApplianceShaw Group

Consumer Electronics Industry

Before

2000

2005 2010and

beyond

Before

2000

2005 2010 and

beyond

N/A Low +20% Designer/R&D

software

Low +20% +10% Comp. Manufact.

+20% <5% Very Low

Prod. Manufact

/

+20% <5% Very Low

Distributor

+10% +20% +10% Retailer

- - - Consumer

Industry Margin Industry Power

Retail Strategy

E-commerce Retail Stores(own and franchises)

1. Leverage Nashua Brand Equity and Advertising

2. Source and sell Multi brands

3. Prepare for shortening of distribution pipeline (Consumer & Systems products)

4. Position for e-commerce evolution

Percentage of Internet Usage

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2002 2003 2004 2005 2006

Year

Per

cent

age

South Africa

USA

UK

E-Commerce % Market Share of Total Retail Sales (USA)

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

Books andMagazines

Clothing, Footwearand Accessories

ComputerHardware and

Software

Electronics andAppliances

Music, Vidioes andDVD

Office Suppliesand Equipment

Furniture andHome Furnishing

Category

Per

cent

age 2000

2001

2002

2003

Consumer Goods Internet vs Traditional Retail Sales by Product Type

(European Countries) Jan-Mar 2007

91.8 86.6 84.694.1 91.5 86.9

95.5 96

8.2 13.4 15.45.9 8.5 13.1

4.5 4

0

10

20

30

40

50

60

70

80

90

100

Internet

Traditional

87,9 88,6 89,5 90,9 91,9 92,7 93,8 94,8 95,4 97,2 98,3

12,1 11,4 10,5 9,1 8,1 7,3 6,2 5,2 4,6 2,8 1,7

DE CZ UK NL FR CH AT SE IT PL ES

Trad. Sales 91,9 %

Internet Sales8,1 %

Consumer Goods Internet vs TraditionalRetail Sales by Country

(European Countries) Jan-Mar 2007

Online CE retail will reach 24% of total CE retail sales in 2011

UK Industry result by category DSC - 2006

18%DSC - 2007

20%

CAM - 200615%

CAM - 200717%

LCD - 20069%

LCD - 200714%

PDP - 20068%

PDP - 200713%

Traditional

Internet