www.altron.co.za

Altron GroupYear End Results 2004

Robert VenterChief Executive

www.altron.co.za

Altron Group

53,4% 54,6% 100%

Altech BTG Powertech

Telecoms, Multi-media, InformationTechnology (TMT)

Information Technology Power Electronics

Employees: 1824Market Cap: R3.5 bn

Employees: 3647

Market Cap: R920 m

Employees: 5171

JSE listed **

****

**Revenue: R10 bn

Market cap: R3.3 bn

Employees: ± 11 000

Based on share prices as of 7 May 2004

www.altron.co.za

Products and services

Altech BTG Powertech

TELECOMMUNICATIONS

Cellular telephony, vehicle tracking and recovery systems.

Design, installation and commissioning of two-way radio equipment and systems.

MULTIMEDIA & ELECTRONICS

Distributors of professional electronic components and products.

Design and manufacture of digital satellite decoders and software applications.

INFORMATION TECHNOLOGY

Integrated computer systems solutions and smart-card technology systems.

INFORMATION TECHNOLOGY

Microsoft licensing & systems integrator.

Independent IT consulting services and solutions.

Network solutions & maintenance.

Software sales, development, implementation & application maintenance.

ERP implementation.

Exclusive distributor of NCR products (ATMs), services and implementation of EFT applications and scanners.

Desktop services and support. Remote monitoring of IT facilities.

Sole distributor of Xerox office products and supplier of document management services.

Electronic switching & transactions processing for the medical industry.

POWER ELECTRONICS

Medium- and low-voltage power cables.

Power and distribution transformers.

Automotive, traction batteries and DC power systems.

Electrical accessories.

Lighting control gear.

TELECOMMUNICATIONS

Fibre-optic and metallic cables and accessories.

Data cable systems.

Standby power and rectifier systems.

Solar systems.

www.altron.co.za

Companies per segment

InformationTechnology

Power Electronics & Multimedia

Telecoms

www.altron.co.za

Key financials

2004 2003 % change

Revenue – cont. operations R10bn R11bn -9

Operating income – cont. operations R718m R807m -11

Operating margin (%) 7.1% 7.3%

Adjusted HEPS (cents)* 139 137 +2

RONA 17% 22%

Working capital R0.8bn R1.2bn

Cash on hand R2bn R1.5bn

* Excluding surplus from Benefit Fund in prior year

www.altron.co.za

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

www.altron.co.za

Op incomeR 207m

Op. margin6.2%

*HEPS 12%

Op incomeR 333m

Op. margin8%

*HEPS -6%

Op incomeR 185m

Op. margin7.1%

*HEPS 27%

53,4% 54,6% 100%

■ JSE listed

■ ■

■

Altech BTG Powertech

Op income: R 718m

*HEPS: 2%

Op. margin: 7.1%

Group results at a glance(for the twelve months ended 29 February 2004)

* HEPS: Adjusted HEPS for the year excludes benefit fund surplus

www.altron.co.za

Summary of key strategic philosophies

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

www.altron.co.za

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

www.altron.co.za

Share price performance

70

90

110

130

150

170

20

03

/03

/03

20

03

/04

/01

20

03

/05

/05

20

03

/06

/02

20

03

/07

/01

20

03

/07

/29

20

03

/08

/26

20

03

/09

/23

20

03

/10

/22

20

03

/11

/19

20

03

/12

/18

20

04

/01

/20

20

04

/02

/17

20

04

/03

/16

20

04

/04

/19

Altron rebased Altron preference shares rebased

Electronics index rebased ALSI rebased

1 2

3 4

1

2

3

4

Cents

www.altron.co.za

Hard currency revenues

0

500

1000

1500

2000

2500

3000

1998 1999 2000 2001 2002 2003 2004

R million

Revenue from foreign operations Exports

Note: 1998 to 2003 includes AAT exports

Altron GroupFinancial results 2004

Diane RadleyChief Financial Officer

www.altron.co.za

Group income statement

R million 2004 2003 % change

Revenue - total 10 045 11 397 -12 (-6)

Continuing operations 718 807 -11 (-7)

Discontinued operations 28

Benefit Fund - 74

Operating income 718 909

Net investment income 119 96

Income from associates 9 19

Income before amortisation and capital items 846 1 024

Goodwill amortised and impaired (134) (105)

Capital items 34 244

Net income before tax 746 1 166

Taxation (252) (288)

Net income after tax 494 878

Outside shareholders interest (152) (414)

Attributable income 342 464

www.altron.co.za

Group income statement

2004 2003 % change

EPS (cents) 125 173

HEPS (cents) 139 149

Adjusted HEPS (cents) 139 137 +2

Dividend per share declared 52 43 +21

www.altron.co.za

Contribution by subholding company

2003Revenue

2004

Altech BTG Corporate & Financial services Powertech

41.2%

33.2%

26.0%36%

36%

27%

1%

www.altron.co.za

46%

29%

26%

Contribution by subholding company

2003Operating

income2004

Altech BTG Corporate & Financial services Powertech

45%

29%

20%

6%

www.altron.co.za

Contribution by subholding company

2003Headlineearnings

2004

Altech BTG Corporate & Financial services Powertech

45%

38%

15%

2%

48%

31%

15%

6%

www.altron.co.za

Group balance sheet

R million 2004 2003

Fixed and non-current assets 1 415 1 437

Rental finance advances 189 286

Cash and cash equivalents 2 004 1 510

Receivables and inventories 2 447 2 943

Total assets 6 055 6 176

Ordinary shareholders’ interest 2 475 2 267

Outside shareholders’ interest 1 082 1 291

Long-term loans 277 281

Short-term loans 247 193

Other long term liabilities 41 120

Current liabilities 1 933 2 024

Total equity and liabilities 6 055 6 176

NAV per share 901 837

www.altron.co.za

Group cash flow analysis

R million 2004 2003

Operating activities 778 710

Cash generated by operations 778 1 056

Net investment income 106 87

Changes in working capital 387 (7)

Taxation paid (295) (202)

Cash from operating activities 976 934

Dividends paid (198) (224)

Investing activities (310) (27)

Financing activities 68 (582)

Net funds generated 536 101

Cash and cash equivalents 1 510 1 444

Translation & effect on cash of proportionate consolidation (42) (35)

Cash and cash equivalents – end of year 2 004 1 510

www.altron.co.za

Powertech

R million 2004 2003 % change

Revenue 3 332 4 117P/C 3 790

-19-12

Operating income 207 267P/C 228

-22-9

Headline earnings 146 143 +2

Headline earnings (excl Benefit Fund)

146 130 +12

P/C – Proportional consolidation

www.altron.co.za

PowertechSegmental results

18%

82%

27%

74%

6%

94%

15%

85%

Revenue

Operatingincome

2004 * 2003*

Telecoms

Power Electronics

* Proportionally consolidated

www.altron.co.za

Powertech Segmental results by product (revenue)

Electrical accessories

Battery & solar

Transformers

Cables

2004 2003

R 333m

R 610m

R 312m

R 2054m

R 264m

R 634m

R 274m

R 2534m

* ABB PTT and Tridonic proportionally consolidated

* *

Segmental review

www.altron.co.za

37%

36%

28%

Contribution per segment

Power Electronics/ Multimedia

IT

Telecoms

Corporate & Financial Services

Revenue

Operatingincome

2004 2003

34%

36%

29%

1%

35%

32%

30%

3%

25%

41%

24%

10%

www.altron.co.za

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

www.altron.co.za

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

www.altron.co.za

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

www.altron.co.za

Growth strategies going forward

Altech growth to be driven by a combination of external acquisitions and internal investment in R&D and intellectual capital. Balance sheet provides good flexibility.

BTG growth to be driven by consolidation of IT industry and internal investment in systems and intellectual capital. Current balance sheet restricts significant external opportunities.

Powertech growth strategies to be driven around reinvestment in capital equipment focusing on efficiencies in the right areas. Complemented by synergistic small to medium size acquisitions.

Thank You