COMPANY PROFILE

Altron Ltd

REFERENCE CODE: 08CA2F2E-A1CD-422C-977E-B0BDF66DE19F

PUBLICATION DATE: 11 Dec 2023

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TABLE OF CONTENTS

Tickers ............................................................................................................................. 3
Key Facts ......................................................................................................................... 4
Company Overview ........................................................................................................5
Business Description .....................................................................................................6
History ............................................................................................................................. 7
Key Employee Biographies .........................................................................................18
Company View ..............................................................................................................21
Locations And Subsidaries .........................................................................................24
Top Competitors ...........................................................................................................25
Major Products & Services ..........................................................................................26
Financial Ratios - Capital Market Ratios ....................................................................27
Financial Ratios - Annual Ratios .................................................................................28
Financial Ratios - Interim Ratios .................................................................................30

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Altron Ltd

Tickers

TICKERS

Company Name Altron Ltd

Ticker Symbol AEL
Stock Exchange Johannesburg Stock Exchange

Altron Ltd Page 3

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Altron Ltd

Key Facts

KEY FACTS

Head Office Altron Ltd

Woodlands Office Park
20 Woodlands Drive, Woodmead
Johannesburg
Johannesburg
South Africa
Phone 27 11 6453600
Fax 27 11 7265778
Web Address www.altron.com
Revenue / turnover (ZAR Mn) 8,445.0
Revenue (USD Mn) 516.2
Financial Year End February
Employees 5,009
Johannesburg Stock Exchange AEL
Ticker

Altron Ltd Page 4

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Altron Ltd

Company Overview

COMPANY OVERVIEW
Altron Ltd (Altron), formerly Allied Electronics Corp Ltd, is an information technology company that
provides holistic technology solutions. The company through its subsidiaries also offers electronic
components and risk management solutions. Its offerings include vehicle tracking and recovery, data
solutions, process management and control, data governance, machine learning, master data
management, fleet management services, software asset management, software managed services and
cyber-security among others. Altron provides integrated ICT solutions to government, businesses and
consumers. The company operates in Africa, Europe, Australia, the Middle East, Asia and the Americas.
Altron is headquartered in Johannesburg, Gauteng, South Africa.

The company reported revenues of (Rand) ZAR8,445 million for the fiscal year ended February 2023
(FY2023), an increase of 6.5% over FY2022. In FY2023, the company’s operating margin was 6.4%,
compared to an operating margin of 3.6% in FY2022. The net loss of the company was ZAR4 million in
FY2023, compared to a net loss of ZAR104 million in FY2022.

Altron Ltd Page 5

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Altron Ltd

Business Description

BUSINESS DESCRIPTION
Altron Ltd (Altron) is a technology company. It operates through its subsidiaries, Allied Technologies
Limited (Altech) and Bytes Technology Group (Bytes). The company has operations in Africa, Europe,
Australia, the Middle East, Asia and the Americas.

The company’s service offerings include cloud services, internet of things, data services, security,
enterprise application innovation, enterprise security, infrastructure, managed print services and software
services.

Altron’s cloud services comprises of Digital Marketing, Mobile and Self-Service, Microsoft Dynamics 365
for Customer Engagement, Microsoft Dynamics 365 for Operations and Finance and Azure. It provides
internet of things services such as vehicle tracking and recovery, device management, data monetisation,
insurance telematics and fleet management services.

The company’s data services includes budgeting, forecasting and reporting, business intelligence and
analytics, process management and control, data governance, machine learning, master data
management and big data services. It’s security offerings comprises of cyber-security through security
operations centre.

Altron’s enterprise application innovation offering consists of workforce management, customer

engagement management, process automation, customer experience management and DevOps and
cloud enablement services. The company provides infrastructure services such as storage and data
centre infrastructure, network infrastructure and cloud infrastructure.

The company’s managed print services comprises of production printers (PSG), xerox office printers
(OSG) and print room services. It offers software services including software asset management,
software managed services and software license management service.

Altron Ltd Page 6

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Altron Ltd

History

HISTORY

Acquisitions/Mergers/Takeovers

Year: 2021

In April, the company acquired Lawtrust from Etion for R245 million.

Asset Disposal

Year: 2021

In October, the company has disposed the assets of its People Solutions.

Acquisitions/Mergers/Takeovers

Year: 2021

In September, the company has acquired the assets of Lawtrust.

Corporate Awards

Year: 2020

In the year 2020, the company has been awarded the Digital Industry Firm of the Year award and Chief
Executive Officer Mteto Nyati was honored with Lifetime Achievement Award for Excellence in the field of
Management at South African Professional Services Awards (SAPSA).

Others

Year: 2020

The company has decided to demerge Bytes UK and separately list it on the UK stock exchange.

Acquisitions/Mergers/Takeovers

Year: 2020

In March 2020, the company has acquired Ubusha Technologies for a value of ZAR360 million.

Plans/Strategy

Year: 2019

Altron Ltd Page 7

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Altron Ltd

In December, the company announced its plan to acquire Ubusha Technologies, an identity security
company.

Acquisitions/Mergers/Takeovers

Year: 2018

In June, the company agreed to acquire iS Partners for a value at US$3.26 million.

Acquisitions/Mergers/Takeovers

Year: 2017

In July, EOH agreed to acquire Powertech System Integrators from Allied Electronics.

Contracts/Agreements

Year: 2017

In January, the company signed a channel partnership agreement with Nokia and joined the Nokia Global
Partner Program to market, distribute and service Nokia’s network solutions portfolio.

Acquisitions/Mergers/Takeovers

Year: 2015

Med-E-Mass, part of the Altron TMT group of companies, acquired Health-Soft, a provider of ground
breaking technology services to the South African healthcare industry, for a purchase price not exceeding
ZAR10 million in 2015.

Acquisitions/Mergers/Takeovers

Year: 2015

In 2015, Altech Netstar acquired Pinpoint Communications in Australia, a provider of fleet and asset
management solutions, for a maximum purchase price of A$8.3 million.

Contracts/Agreements

Year: 2015

Allied Electronics entered into a global distribution agreement with RS Components, a Taiwan
Semiconductor manufacturer, in 2015.

New Products/Services

Altron Ltd Page 8

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Altron Ltd

Year: 2014

In 2014, Crabtree introduced Topaz, a range of permanent virtual circuit (PVC) switches and sockets
designed and engineered in South Africa.

Contracts/Agreements

Year: 2014

Altech Autopage, part of the Altron TMT division, entered into an agreement to purchase the Nashua
Mobile Cell C subscriber, in 2014.

Acquisitions/Mergers/Takeovers

Year: 2014

Bytes acquired 27% of its issued share capital for ZAR669 million from a consortium led by Kagiso
Strategic Investments (Pty) Limited (which is indirectly owned by Kagiso Tiso Holdings (KTH)) by way of a
share repurchase, in 2014.

Acquisitions/Mergers/Takeovers

Year: 2014

In 2014, Altech Netstar acquired the entire issued share capital of Fleetpro Proprietary Limited for a
purchase price of ZAR15 million and the assets of Celtrac Proprietary Limited for a purchase price of
ZAR6 million.

Divestiture

Year: 2014

Altron disposed its 8.6% interests in Liquid Telecommunications Holdings Limited (Liquid) in 2014.

Corporate Changes/Expansions

Year: 2014

In 2014, the company rebranded its logo. Later in the same year, Powertech Transformers opened its
power transformer facility

Acquisitions/Mergers/Takeovers

Year: 2014

Powertech, a wholly-owned subsidiary of Altron, sold its 50% interests in Tridonic SA (Pty) Ltd to Tridonic
Holding GmbH, Austria, in 2014.

Altron Ltd Page 9

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Altron Ltd

Contracts/Agreements

Year: 2014

Altech Alcom Matomo, a part of Altron TMT division, received a contract to build, operate and maintain a
province wide broadband network that will offer broadband fiber access to Gauteng Provincial
Government owned buildings, Thusong centres, economic zones and twenty priority townships for a
period of five years, in 2014.

Acquisitions/Mergers/Takeovers

Year: 2013

In 2013, Bytes Technology Group South Africa, a subsidiary of Bytes, acquired the business of Brand
New Technologies Proprietary Limited, a provider of identity management products and solutions. In the
same month, Powertech formed a new powertech system integrators business through the amalgamation
of its three existing businesses, powertech IST, strike technologies and TIS.

Acquisitions/Mergers/Takeovers

Year: 2013

Powertech acquired a majority shareholding in QuadPro, a business established to offer turnkey

substation solutions into the South African and African market, in 2013.

Contracts/Agreements

Year: 2013

Powertech Transformers (PTT), a subsidiary of Powertech received an order for several 800kVA
11600/420V miniature substations, in 2013.

Contracts/Agreements

Year: 2012

Bytes entered into agreements to acquire 100% of the issued share capital of Unisys Africa from Unisys
Corporation and CyberKnowledge Systems Investments (Pty) Ltd, a local empowerment company, in
2012.

Acquisitions/Mergers/Takeovers

Year: 2012

Bytes Systems Integration, a subsidiary of Bytes Technology Group acquired Alliance Business Solutions
(Alliance), in 2012.

Altron Ltd Page 10

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Altron Ltd

Contracts/Agreements

Year: 2011

In 2011, Absa entered into a contract with Bytes for the replacement of 4,500 ATMs throughout South
Africa, over a period of three years. In the same year, Bytes acquired Security Partnerships.

Contracts/Agreements

Year: 2011

Powertech entered into the switchgear market with two products in the 11kV Air Insulated Medium
Voltage range in 2011.

Acquisitions/Mergers/Takeovers

Year: 2011

In 2011, Altech acquired 100% of the equity in Swist Technology Solutions (Pty) Ltd (Swisttech). Also in
the same year, Xerox acquired the assets of WaterWare Internet Services.

Acquisitions/Mergers/Takeovers

Year: 2011

Bytes acquired 100% of the issued share capital of Unisys Africa from Unisys Corporation and
CyberKnowledge Systems Investments (Pty) Limited, in 2011.

Contracts/Agreements

Year: 2010

In 2010, NCR Corporation and Bytes announced the extension of a five-year agreement that would
enable Bytes to offer NCR solutions to its customers in South Africa and its neighboring countries.

Contracts/Agreements

Year: 2009

Altech entered into a bandwidth alliance with Seacom in 2009.

Acquisitions/Mergers/Takeovers

Year: 2009

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Altron Ltd

In 2009, Altech acquired Technology Concepts, an internet service provider (ISP) and information
technology company. Also in the same year, Altech's Kenya Data Networks (KDN) acquired 8.5% stake in
The East Africa Marine System Limited (TEAMS).

Contracts/Agreements

Year: 2009

Bytes Outsource Services was awarded a three-year contract to manage and operate Neotel's customer
care contact center, in 2009.

Acquisitions/Mergers/Takeovers

Year: 2008

Powertech acquired the electrical engineering operations of the IST group. In the same year, Bytes was
de-listed from the JSE, in 2008.

Acquisitions/Mergers/Takeovers

Year: 2008

In 2008, Altech acquired ComTech. In the same year, Powertech acquired a 25% interest in Cables de
Comunicaciones Zaragoza. Also in the same year, Powertech acquired Swanib Cables. Later in the year,
Altech acquired a 51% interest in the Sameeer ICT group in Kenya.

Acquisitions/Mergers/Takeovers

Year: 2008

Powertech acquired a 50% stake in ABB Powertech Transformers in 2008.

Divestiture

Year: 2008

Powertech disposed Yelland Control to Omron Europe, in 2008.

Acquisitions/Mergers/Takeovers

Year: 2008

Bytes acquired Intelleca, and Nor Paper, in 2008.

Acquisitions/Mergers/Takeovers

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Altron Ltd

Year: 2007

Altron acquired Swanib Cables in 2007.

Acquisitions/Mergers/Takeovers

Year: 2006

In 2006, Altron increased its shareholding in Bytes to 57.7%. In the same year, Bytes purchased UK -
Vantage and Xclusive (Xerox concessionaires). Also in the same year, Altech purchased French-based
MobiMaster.

Contracts/Agreements

Year: 2005

Powertech purchased Calidus, a manufacturer and supplier of electrical insulation materials, and signed a
new 10-year agreement with Von Roll Isola in 2005.

Contracts/Agreements

Year: 2005

In 2005, Vodacom and MTN signed long- term agreements with Altech for Altech Autopage Cellular to act
as an independent service provider for a minimum of five years. Also in the same year, CS Holdings was
integrated into Bytes.

Contracts/Agreements

Year: 2004

In 2004, Altech and the Econet Wireless Group entered into a joint venture agreement.

Acquisitions/Mergers/Takeovers

Year: 2004

Altech acquired NamITech, a manufacturer of smartcards, pre-paid vouchers and a mobile solutions
provider, in 2004.

Stake Sale

Year: 2004

In 2004, Bytes sold 27% of its Bytes South African operations to Kagiso. Further in the year, Bytes
purchased CS Holdings as well as 50% of Xerox SA from Xerox International thereby made Xerox SA its
wholly-owned subsidiary.

Altron Ltd Page 13

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Altron Ltd

Corporate Changes/Expansions

Year: 2004

In 2004, Bytes re-branded Xerox SA as Bytes Document Solutions.

Acquisitions/Mergers/Takeovers

Year: 2003

Altech Card Solutions (ACS) acquired Cardtronics in 2003.

New Products/Services

Year: 2003

Fintech launched the first office equipment securitization in South Africa, in 2003.

Stake Sale

Year: 2003

Alcom Systems sold 30% of its stake to Motoma ICT Group, in 2003.

Stake Sale

Year: 2002

In 2002, Altech sold its 40% stake in Alcatel Altech Telecoms.

Stock Listings/IPO

Year: 2002

Powertech and Fintech were delisted and became the wholly-owned subsidiaries of Altron, in 2002.

Contracts/Agreements

Year: 2002

Aberdare Cables, a subsidiary of Powertech, entered into an equity partnership with Corning International
Corporation. Also in the same year, Powertech sold its 30% shareholding in Voltex distribution to Bidvest,
in 2002.

Acquisitions/Mergers/Takeovers

Altron Ltd Page 14

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Altron Ltd

Year: 2000

Powertech acquired Cables de Comunicaciones SL, a Spanish telecommunications cable manufacturer

in 2000.

Acquisitions/Mergers/Takeovers

Year: 2000

USKO was re-branded as Bytes Technology Group Limited (Bytes) and the information technology (IT)
interests of Fintech were purchased by BTG to consolidate the group's IT under Bytes, in 2000.

Stake Sale

Year: 1999

In 1999, the group sold its shareholding in Telemetrix.

Acquisitions/Mergers/Takeovers

Year: 1999

Powertech acquired Battery Technologies, in 1999.

Contracts/Agreements

Year: 1999

Altech entered the smart card field through Altech Smart Card Technologies, in 1999.

Acquisitions/Mergers/Takeovers

Year: 1997

Altron acquired Lambda Cables, and Netstar, a vehicle tracking company, in 1997. In the same year,
Powertech acquired Sabat Batteries. Also in the same year, Powertech acquired the cable manufacturing
interests, as well as a 25% stake in the distribution business of Voltex Holdings Limited.

Divestiture

Year: 1995

In 1995, Powertech disposed its Gentech household appliance business to Whirlpool (USA).

Patent Grant

Altron Ltd Page 15

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Altron Ltd

Year: 1995

Altron's listed subsidiary Autopage secured a license to act as a global system for mobile communications
(GSM) cellular service provider to both network operators, MTN and Vodacom, in 1995.

Acquisitions/Mergers/Takeovers

Year: 1989

Fintech acquired a majority shareholding in NCR Corporation of South Africa, in 1989.

Acquisitions/Mergers/Takeovers

Year: 1987

In 1987, Fintech acquired Rank Xerox South Africa and Altech acquired UEC Projects. In the same year,
Powertech acquired the remaining shareholding in ASEA Sweden and Stromberg South Africa from
Stromberg in Finland.

Acquisitions/Mergers/Takeovers

Year: 1985

Powertech bought a controlling interest in Aberdare Cables and then merged Scottish Cables and ASEA
W/Aberdare and created a new company under the Aberdare brand in 1985.

Acquisitions/Mergers/Takeovers

Year: 1984

Powertech acquired Scottish Cables from BICC, in 1984.

Acquisitions/Mergers/Takeovers

Year: 1983

In 1983, Powertech acquired former Swedish-owned ASEA Electric.

Acquisitions/Mergers/Takeovers

Year: 1982

Powertech acquired 90% of Lascon Lighting Industries, in 1982.

Corporate Changes/Expansions

Altron Ltd Page 16

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Altron Ltd

Year: 1981

A holding company under the name Ventron Corporation was created to control the Altron, Altech,
Powertech and Fintech companies in 1981.

Corporate Changes/Expansions

Year: 1979

In 1979, a new holding company, Allied Electronics Corporation (Altron) was created and Altech became
its telecommunications subsidiary and Powertech as the power electronics subsidiary.

Stock Listings/IPO

Year: 1979

Powertech was listed on the Johannesburg Stock Exchange, in 1979.

Acquisitions/Mergers/Takeovers

Year: 1979

Powertech acquired the Willard Battery Group from the ESB Group (USA), and Litemaster as well as
Crabtree Electric from the Crabtree Group (UK), in 1979.

Stock Listings/IPO

Year: 1975

Altech was listed on the Johannesburg Stock Exchange (JSE) in 1975.

Acquisitions/Mergers/Takeovers

Year: 1974

In 1974, the group acquired a telecommunications manufacturer, STC (UK) from ITT Corporation (USA),
and subsequently Altech Technologies (Altech) became the holding company of the group in 1974.

Incorporation/Establishment

Year: 1965

Allied Electronics Corporation (Altron) was founded by Bill Venter in 1965.

Altron Ltd Page 17

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Altron Ltd

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Antony Ball

Board:Non Executive Board

Job Title: Director
Since:2017
Age:63

Grant Gelink

Board:Non Executive Board

Job Title: Director
Since:2012
Age:72

Nicholas Bofilatos

Board:Executive Board
Job Title: Chief Financial Officer, Director
Since:2021
Age:839

Mr. Nicholas Bofilatos has been the Chief Financial Officer of the company since 2021. He is also serving
as the Director of the company. Previously, he also served as the Chief Financial Officer at Ctrack
Holdings.

Alupheli Sithebe

Board:Non Executive Board

Job Title: Director
Since:2021
Age:39

Sharoda Rapeti

Board:Non Executive Board

Job Title: Director
Since:2021
Age:58

Pamela Xaba

Board:Senior Management

Altron Ltd Page 18

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Altron Ltd

Job Title: Altron Group Executive - Human Capital

Age:44

Tapiwa Ngara

Board:Non Executive Board

Job Title: Director
Since:2021
Age:40

Debra-Lynn Marais

Board:Senior Management
Job Title: Chief Information Officer
Since:2021

Ms. Debra-Lynn Marais has been the Chief Information Officer of the company since 2021. Previously,
she also served as the Group Shared Services Executive responsible in handling the Finance, Real
Estate, HR Operations and Group Procurement functional areas. Ms. Marais has over20 years
experience in in information technology.

Hansie Schutte

Board:Senior Management
Job Title: Altron Group Executive: Legal
Since:2021
Age:56

Kennedy Chinganya

Board:Senior Management
Job Title: Managing Director-Altron Nexus
Since:2021

Andrew Whittaker

Board:Senior Management
Job Title: Managing Director-Altron Security
Since:2021

Nicole Morgan

Board:Senior Management
Job Title: Secretary

Werner Kapp

Altron Ltd Page 19

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Altron Ltd

Board:Executive Board
Job Title: Chief Executive Officer, Director
Since:2022

Mr. Werner Kapp has been the Chief Executive Officer and Director of the company since October 2022.

Stewart Van Graan

Board:Executive Board
Job Title: Chairman
Age:67

Mr. Stewart Van Graan has been the Chairman of the company since 2021. Earlier, he served as Acting
Chief Executive Officer in the company. Previously, he also served as the Director of the company. He
also serving as the Non Executive Director of Old Mutual Limited and BankservAfrica. Mr. Grann served
as the Adivsory Board Member of the University of Stellenbosch Business School.

Robert Venter

Board:Non Executive Board

Job Title: Director
Since:1997
Age:62

Brett Dawson

Board:Non Executive Board

Job Title: Director
Since:2017
Age:57

Phumla Mnganga

Board:Non Executive Board

Job Title: Director
Since:2019
Age:54

Altron Ltd Page 20

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Altron Ltd

Company View

COMPANY VIEW
A statement by Mr. Stewart van Graan, the Chairman of the company, is given below. The statement has
been taken from the company’s 2023 annual report.

OPERATING CONTEXT

The theme which encompassed the Board’s focused activities during FY22 was one of connectedness to
our ecosystem. More than any preceding year, FY21 demonstrated that Altron’s ability to create value is
linked to the sustainability of all our stakeholders, both external and internal. As we entrenched our
adaptation to the Covid-19 operating context, we reaffirmed our mutual commitment to both our values
and our stakeholders. Our employees were as important as our shareholders, who were in turn as
important as our partners and our customers. None of these parties could create value sustainably in
isolation, and Altron’s business resilience is a function of these stakeholders’ interconnectedness and key
dependencies. Our adaptation to a hybrid working model was embedded during FY22, with the result that
we met business objectives and made critical decisions in what was a virtual space. Productivity was
maintained and our efficiency increased which is testament to the outstanding response and agility of
Altron’s employees.

Given the economic constraints, Altron is positioned to deal with the coming waves of the pandemic.
Uncertainty will remain, with recent events in Europe – nothing short of a humanitarian crisis – deeply
concerning not only for their immediate effects but the potential for knock-on impacts on the South African
economy and supply chains. On a positive note, we take comfort from the measured budget presentation
by the Minister of Finance in 2022 and its indications that the South African economy should remain
relatively stable in the short term. This will allow us to focus on business resilience in response to global
challenges. Altron is fortunate to have built a base portfolio of businesses that is relatively defensive, but
we will remain vigilant in the face of uncertainty.

STRATEGIC RESPONSE

The Board’s major focus area during FY22 was the business resilience and long-term sustainability of the
Altron Group. We needed to ensure that we could pull the correct levers to position Altron for future
growth and market share gains through.

Above this foundation, our task during the year was to focus on the underlying portfolio of businesses
which remained after the Bytes UK demerger (finalised in December 2020) to ensure that the remaining
core business was self-sufficient and appropriately positioned. The Bytes UK demerger allowed the Board
and management team to review our strategies for driving revenue, margins and earnings in our targeted
growth areas and to ensure that the Altron business model was robust and relevant. Our strategy to
complete the disposal of non-core businesses is almost complete, with the sale of Altron People Solutions
and pending sale of Altron Document Solutions making progress for the year.

For those businesses that remain as the stable core of Altron 2.0, our task will be to manage these
businesses to their full potential. This will be a central task of the incoming Group Chief Executive, who
will be able to build upon the transformative change that has taken place over the last four years. We will
continue to unlock value for our shareholders and other stakeholders in the way we have done

Altron Ltd Page 21

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Altron Ltd

consistently during the current Group Chief Executive’s tenure. While we acknowledge some missed
opportunities to capture revenue in FY22, the Board has worked hard during the year to correct strategy
and position underlying businesses to increase their contributions to the Group. In FY22 Altron improved
its market intelligence and customer intimacy that have allowed us to refine our offerings to reap financial
rewards for both Altron and its stakeholders.

We are cognisant of the discount to net asset value at which Altron trades and have positioned our core
businesses to speak to the pain points of our customers to ensure long-term sustainability. The inability of
many businesses to operate successfully in a virtual environment has created the opportunity for Altron to
insert itself into our customer ecosystems to provide ICT competencies for which they have an urgent
need.

LEADERSHIP CHANGES

In FY23 Altron’s Group Chief Executive completes a five-year term which is unanimously deemed a
success. Mteto Nyati led transformative business change that has altered the shape and nature of Altron
to deliver on its purpose more effectively as an ICT Company. The completion of this transitional phase of
strategy has come with a changing of the guard in the Executive team which was to be expected as the
Group resets for its next phase.

Altron has emerged a substantially leaner and more focused organisation, with a structure more
appropriate for its more agile current nature. There is a great deal of anticipation within Altron that, under
a new Group Chief Executive, the Group is ready to move beyond business as usual and attain new
levels of value creation from a focused base. Our leadership strategy has been to place the best person
in any available role. FY22 presented an opportunity to strengthen and improve Altron as a future-focused
organisation. This process has revealed the strength of Altron’s resilience succession planning, which
remains a critical part of our management of leadership changes.

BOARD COMPOSITION

The year under review also saw significant changes to both Board Committee structure and constitution,
which was again conducted according to an orderly succession plan. Mike Leeming retired from his
position as Board Chairman and Berenice Francis resigned as an independent non-executive Director.
The Board utilised Altron’s transition as an opportunity to leverage the skills and independence of the
Board and reconfigure its subcommittees. The merging and reconstitution of Board subcommittees from
six to three has allowed us to streamline efficiency of oversight of the business in its current form. Audit
expertise technology and ESG are foremost of Altron’s requirements on the Board, and we were able to
add complementary experience in both fields during FY22.

Altron’s Investment Committee, which has done sterling work in guiding the Group through disposals and
acquisitions in line with Altron 2.0, remains effective in capital management, and oversight. Changes to
the Board in FY22 were designed to balance diversity in skills, through leadership experience and this
has improved Board engagement. The practical advice flowing from the Board’s complementary skillset
has found immediate and demonstrable application in providing oversight and guidance to portfolio
businesses that are important to the future success of Altron. New additions to the Altron Board include
Sharoda Rapeti (independent non-executive); Alupheli Sithebe (independent non-executive); and Tapiwa
Ngara (alternate Director).

Altron Ltd Page 22

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Altron Ltd

The Board has been actively involved in deploying new management team members in the Netstar
business and shifting its business model toward high-potential and differentiated revenue streams
provided by the advancement of digital technology in the Fourth Industrial Revolution. The transformation
of Netstar to reach its full potential is underway and we expect the turn-around to be positive for the
Group. In terms of Altron’s own evolution as a modern ICT business, we remain focused on
environmental, social and governance issues that underpin our long-term sustainability. Whilst Altron
does not have a significant carbon footprint, which is decreasing the further we move up the ICT value
chain and away from hardware solutions, we play a critical advisory role in guiding our customers and
suppliers on technology and processes on a carbon-neutral paradigm.

OUTLOOK

The Board has been intimately involved with recruitment of a new Group Chief Executive since Q4 of
FY22. It is critical to the next phase of strategy that we select and retain a leader who matches the values
that have been embedded within Altron and understands the available opportunities to drive the portfolio
of companies to their full potential and unlock further value for stakeholders. This represents the most
important focus area for the Board H1 of FY23 and will continue through the Group Chief Executive’s
appointment and the robust co-creation of strategic direction to take the Group forward. Operationally, we
anticipate enhanced execution of Altron 2.0 strategy through the coming year, focusing once again on
business fundamentals such as attraction and retention of key skills, working capital management and
quality engagements with our value chain in respect of growth markets.

ACKNOWLEDGEMENTS
I would like to wish Mike Leeming well on his retirement. Mike’s successful leadership of Altron through
an extremely challenging period had a major impact on both the Board and me personally. We schooled
ourselves from his example and Mike proved inspirational in our own journeys at Altron as the Group
refined its market orientation. Similarly, Mteto unlocked a huge amount of shareholder value during his
tenure and has built an employee base that is the envy of many competitors. Mteto has engaged with the
Board and the Company at large in a very open-minded way and must take significant credit for the
successful changes and repositioning of Altron. His rapport with all stakeholders is testament to his
personal values, which are reflected in our organisation.
We extend our condolences to the families and friends of Altron employees who succumbed to Covid-19
during the year. I am also grateful to my fellow Board members, our customers, partners and
shareholders, who have shown trust and loyalty as we continue to manage the business for resilience.

Altron Ltd Page 23

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Altron Ltd

Locations And Subsidaries

LOCATIONS AND SUBSIDARIES

Head Office

Altron Ltd
Woodlands Office Park
20 Woodlands Drive, Woodmead
Johannesburg
Johannesburg
ZAF
Phone:27 11 6453600
Fax:27 11 7265778
www.altron.com

Other Locations and Subsidiaries

Altech Netstar (Pty) Ltd Altron Ltd

ZAF
Altron TMT Bytes Document Solutions Group
Altron Campus, 20 Woodlands Drive, Woodland Office ZAF
Park
Woodmead
Gauteng
Gauteng
Gauteng
Gauteng
ZAF
Bytes Managed Solutions Bytes Secure Transaction Solutions
ZAF ZAF
Bytes Systems Integration Group Bytes Technology Group UK Software
ZAF ZAF
Law Trusted Third Party Services (Pty) Ltd. Powertech QuadPro
Building C, Cambridge Office Park. Powertech House Hampton Park 20
5 Bauhinia Street, Highveld Technopark Centurion Georgian Crescent
Pretoria Bryanston
Gauteng Johannesburg
Pretoria Johannesburg
Gauteng ZAF
ZAF Phone:27 117067184
https://www.lawtrust.co.za Fax:27 11 7061036
www.powertech.co.za

Altron Ltd Page 24

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Altron Ltd

Top Competitors

TOP COMPETITORS
The following companies are the major competitors of Altron Ltd

Dimension Data Holdings Plc

EOH Holdings Ltd
Reunert Ltd
Telkom SA SOC Ltd
Vodacom Group Ltd

Altron Ltd Page 25

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Altron Ltd

Major Products & Services

MAJOR PRODUCTS & SERVICES

Altron is a provider of industrial automation products and electronic components. The major services of
the company include the following:

Services:

Cloud Services
Internet of Things (IoT)
Data
Security
Automation
Digital Strategy and Interactive Experiences
Enterprise Application
Enterprise Security
Vehicle Tracking and Recovery
ICT Operations
Managed Services
Learning Solutions
Networks
Outsourcing
Training

Altron Ltd Page 26

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 Financial Ratios - Capital Market Ratios

Financial Ratios - Capital Market Ratios

Altron Ltd, Annual Ratios

Key Ratios 02-Feb-2024

P/E (Price/Earnings) Ratio 0.27
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes,
Depreciation and Amortization)
Enterprise Value/Sales
Enterprise Value/Operating Profit
Enterprise Value/Total Assets
Dividend Yield 0.00
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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 Financial Ratios - Annual Ratios

Financial Ratios - Annual Ratios

Altron Ltd, Annual Ratios

Key Ratios Unit/Currency 2019 2020 2021 2022 2023

Equity Ratios
EPS (Earnings per USD 1.80 0.51 0.40 0.51 0.86
Share)
Dividend per Share USD 0.44 0.55 0.48 0.30 0.35
Dividend Cover Absolute 4.10 0.93 0.82 1.69 2.46
Book Value per Share USD 9.52 10.62 12.89 11.32 11.05
Cash Value per Share USD 3.79 4.91 3.93 2.02 1.96
Profitability Ratios
Gross Margin % 32.77 48.27 46.62 45.91
Operating Margin % 6.46 6.19 4.64 3.59 6.39
Net Profit Margin % 4.52 8.78 161.95 -1.31 -0.05
Profit Markup % 44.61 48.75 93.32 87.34 84.89
PBT Margin (Profit % 5.33 2.33 1.71 1.79 4.75
Before Tax)
Return on Equity % 20.11 16.43 255.12 -2.45 -0.10
Return on Capital % 21.16 7.31 5.25 4.42 8.45
Employed
Return on Assets % 6.60 5.14 101.29 -1.05 -0.04
Return on Fixed % 164.37 52.17 26.90 21.48 49.82
Assets
Return on Working % 162.14 26.83 12.26 11.46 22.74
Capital
Growth Ratios
Sales Growth % 6.65 -53.04 1.65 5.66 6.49
Operating Income % 36.24 -54.98 -23.85 -18.10 89.47
Growth
EBITDA Growth % 33.10 -28.33 -12.09 -20.57 36.75
Net Income Growth % 280.21 -8.86 1,775.62 -100.86 96.15
EPS Growth % 55.49 -71.70 -22.63 28.08 70.04
Working Capital % 91.44 172.04 66.71 -12.40 -4.50
Growth
Cost Ratios
Operating Costs (% of % 93.54 93.81 95.36 96.41 93.61
Sales)
Administration Costs % 23.54 33.77 33.15 32.38
(% of Sales)
Liquidity Ratios
Current Ratio Absolute 1.09 1.23 1.76 1.85 1.73
Quick Ratio Absolute 0.94 1.06 1.53 1.52 1.41

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Altron Ltd

Cash Ratio Absolute 0.21 0.25 0.39 0.26 0.23

Leverage Ratios
Debt to Equity Ratio Absolute 0.83 0.92 0.50 0.50 0.43
Net Debt to Equity Absolute 0.43 0.45 0.19 0.32 0.25
Debt to Capital Ratio Absolute 0.45 0.48 0.33 0.33 0.30
Efficiency Ratios
Asset Turnover Absolute 1.46 0.59 0.63 0.80 0.89
Fixed Asset Turnover Absolute 25.46 8.43 5.80 5.98 7.79
Inventory Turnover Absolute 10.52 3.37 3.84 4.75
Current Asset Absolute 2.32 0.90 0.96 1.32 1.53
Turnover
Capital Employed Absolute 3.28 1.18 1.13 1.23 1.32
Turnover
Working Capital Absolute 25.12 4.34 2.64 3.19 3.56
Turnover
Revenue per USD 16,85,965.26
Employee
Net Income per USD -798.56
Employee
Capex to Sales % 1.80 3.49 4.45 2.69 2.53
R&D to Sales %
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

Altron Ltd Page 29

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 Financial Ratios - Interim Ratios

Financial Ratios - Interim Ratios

Altron Ltd, Interim Ratios

Key Ratios Unit/Currency August - February - August - February - August -

2023 2023 2022 2022 2021
EPS (Earnings per ZAR 0.38 0.37 0.38 0.09 0.10
Share)
Dividend per Share ZAR 0.25 0.19 0.16 0.23 0.07
Book Value per ZAR 10.01 11.05 11.35 11.32 11.58
Share
Operating Margin % 7.17 6.29 6.51 3.76 3.41
Net Profit Margin % -7.55 -2.21 2.19 -1.65 -0.95
PBIT Margin (Profit % 5.13 5.12 5.70 6.73 0.00
Before Interest &
Tax)
PBT Margin (Profit % 5.37 4.56 4.94 1.92 1.65
Before Tax)
Operating Costs (% % 92.83 93.71 93.49 96.24 96.59
of Sales)
Interest Costs (% of % 0.25 0.58 0.30 0.32 0.00
Sales)
Current Ratio Absolute 1.72 1.73 1.75 1.85 1.84
Quick Ratio Absolute 1.49 1.41 1.43 1.52 1.54
Debt to Equity Ratio Absolute 0.45 0.43 0.46 0.50 0.43
Net Debt to Equity Absolute 0.26 0.26 0.31 0.32 0.32
Debt to Capital Ratio Absolute 0.28 0.28 0.31 0.33 0.30
Interest Coverage Absolute 2034.48 885.94 1908.57 2096.97 0.00
Ratio
Source: Annual Report, Company Website, Primary and Secondary Research GlobalData

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 A Progressive Digital Media business

Altron Ltd

John Carpenter House, John Carpenter Street, London, United Kingdom, EC4Y 0AN
T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E: [email protected] | W: www.marketline.com
Altron Ltd Page 31
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