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www.altron.co.za

www.altron.co.za. Altron Group Year End Results 2004. Robert Venter Chief Executive. Altron Group. *. Revenue: R10 bn Market cap: R3.3 bn Employees: ± 11 000. *. JSE listed . *. *. Based on share prices as of 7 May 2004. Products and services. Companies per segment. Information

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www.altron.co.za

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  1. www.altron.co.za

  2. Altron GroupYear End Results 2004 Robert Venter Chief Executive

  3. Altron Group * Revenue: R10 bn Market cap: R3.3 bn Employees: ± 11 000 * JSE listed * * Based on share prices as of 7 May 2004

  4. Products and services

  5. Companies per segment Information Technology Telecoms Power Electronics & Multimedia

  6. Key financials * Excluding surplus from Benefit Fund in prior year

  7. Group highlights • Increased HEPS under strengthening rand environment • Cash increased to over R2bn • Dividend increased by 21% • 12 month share price appreciation of 48% • Key acquisitions concluded (Xerox SA, NamITech) • Pre-empted ICT charter with substantial BEE deals announced • Vision 2010 approved by board • Divestitures continue to focus group • Major orders secured including R500m SAPS 2-way digital radio system for Gauteng

  8. Group results at a glance(for the twelve months ended 29 February 2004) ■ Op income: R 718m *HEPS: 2% Op. margin: 7.1% ■ JSE listed 53,4% 100% 54,6% ■■ Altech BTG Powertech Op income R 333m Op. margin 8% *HEPS -6% Op income R 185m Op. margin 7.1% *HEPS 27% Op income R 207m Op. margin 6.2% *HEPS 12% * HEPS: Adjusted HEPS for the year excludes benefit fund surplus

  9. Provide shareholders with above average growth and dividend returns Be market share leaders in our focused sectors Target 25-30% of revenue to come from non-rand currencies Navigate BEE landscape and ICT charters Provide decentralised management culture and encourage entrepreneurship Maintain family control and influence Summary of key strategic philosophies

  10. Corporate activity Activity BTG acquires 50% of Xerox SA BTG sells 27% of BTG to Kagiso* Altech acquires 85% of NamITech Altech sells 28% of NamITech to Pamodzi Altech sells 30% of Alcom Matomo to Matoma Powertech sells 25.1% of Battech to Kagiso Powertech sells 30% of Aberdare Cables to Izingwe Altech sells 25.01% of Altech Data to Pamodzi Effective date 1 June 2003 1 June 2004 1 March 2004 1 March 2004 1 December 2003 1 March 2004 1 March 2004 31 May 2004 Valuation R235m R228m R526m ±R180m ±R7m R19m R165m ±R50m * Subject to shareholder approval

  11. Share price performance Cents 2 1 3 4 2 1 3 4

  12. Hard currency revenues R million Revenue from foreign operations Exports Note: 1998 to 2003 includes AAT exports

  13. Altron GroupFinancial results 2004 Diane Radley Chief Financial Officer

  14. Group income statement

  15. Group income statement

  16. Contribution by subholding company Revenue 2004 2003 Altech BTG Corporate & Financial services Powertech

  17. Contribution by subholding company Operating income 2004 2003 Altech BTG Corporate & Financial services Powertech

  18. Contribution by subholding company Headlineearnings 2004 2003 Altech BTG Corporate & Financial services Powertech

  19. Group balance sheet

  20. Group cash flow analysis

  21. Powertech P/C – Proportional consolidation

  22. PowertechSegmental results Revenue Telecoms Power Electronics 2003* 2004 * Operatingincome * Proportionally consolidated

  23. Powertech Segmental results by product (revenue) R 264m R 333m R 634m R 610m Electrical accessories Battery & solar Transformers Cables R 274m R 312m R 2534m R 2054m * * 2003 2004 * ABB PTT and Tridonic proportionally consolidated

  24. Segmental review

  25. Contribution per segment Revenue Power Electronics/ Multimedia IT Telecoms Corporate & Financial Services 2004 2003 Operatingincome

  26. TelecomsRisks and opportunities Risks • Slowing of growth in SA mobile market • International weakness in demand for infrastructural telecoms products • Delays in SNO provides no incentive for Telkom to expand network • Need for GSM-based vehicle tracking product Opportunities • SNO – when it happens! • Mobile opportunities in Africa – world’s largest unexploited territory • NamITech provides entry into SIM and pre-paid voucher market • SAPS Gauteng tender and Free State government opportunity Altron action • Extended Autopage agreements with SA mobile operators • Reduced exposure to infrastructure segment • Right-sized fibre optic business • Key successes in African markets for SIM cards and pre-paid vouchers • GSM-based vehicle tracking product developed and launched

  27. Multimedia & Power electronicsRisks and opportunities Risks • Strong rand environment • Increased competition in low-end set top boxes • Rising interest rates • High base of power electronics • Supply of copper Opportunities • Infrastructure spend in SA region to remain strong • Major projects in mining and industrial sectors announced • Strong order book at UEC • World Cup 2010 • Regional electricity distribution supply (REDS) Altron action • Currency hedging in place for both imports and exports • Developed and received orders for high-end STB’s (PVR, etc.) • Capital expenditure in power electronics focused on efficiencies – not additional capacity • Developing alternate suppliers of copper

  28. Information TechnologyRisks and opportunities Risks • BEE landscape and ICT Charter • Market conditions in UK IT sector • Exchange rate impact on major imports • Pressure on pricing Opportunities • Improving market conditions for IT sector • Addressable market enhanced through BEE credentials • Europay/Mastercard/Visa (EMV) standard • Security (PKI’s and digital certificates) is growth area Altron action • Empowerment deals concluded at BTG SA and NamITech • Complete offering relating to EMV • Increased level of annuity income to fight price erosion and establish barriers to entry • Streamline and consolidate UK businesses

  29. Growth strategies going forward Altechgrowth to be driven by a combination of external acquisitions and internal investment in R&D and intellectual capital. Balance sheet provides good flexibility. BTGgrowth to be driven by consolidation of IT industry and internal investment in systems and intellectual capital. Current balance sheet restricts significant external opportunities. Powertechgrowth strategies to be driven around reinvestment in capital equipment focusing on efficiencies in the right areas. Complemented by synergistic small to medium size acquisitions.

  30. Thank You

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