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AEL: ALLIED ELECTRONICS CORPORATION LIMITED - Altron Trading Statement and Business Update for the half year ended 31 August 2018 Altron Trading Statement and Business Update for the half year ended 31 August 2018 Allied Electronics Corporation Limited (Registration number 1947/024583/06) (Incorporated in the Republic of South Africa) Share Code: AEL ISIN: ZAE000191342 ("Altron" or "the company") ALTRON TRADING STATEMENT AND BUSINESS UPDATE FOR THE HALF-YEAR ENDED 31 AUGUST 2018 In terms of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as there is a reasonable degree of certainty that the financial results for the period to be reported upon next will differ by at least 20% from the financial results for the previous corresponding period. In line with previous reporting, the financial results for the half-year ended 31 August 2018 have also been divided between continuing and discontinued operations. The table below illustrates expected earnings per share and headline earnings per share on a statutory basis for the half-year financial period: 31 August 31 August 31 August FY18 FY19 FY19 (cents) Between (cents) % range between Total operations Headline earnings per 40 81 - 84 102% - 110% share Earnings per share 23 76 - 79 230% - 243% Continuing Operations Headline earnings per 47 68 - 71 45% - 52% share Earnings per share 44 71 - 74 62% - 68% Continuing operations Subsequent to the restructuring of a number of core businesses, the majority of the group´s operations have had a strong performance for the half-year ended 31 August 2018, with a number of these producing EBITDA growth in excess of 20%. Group revenue from continuing operations is expected to increase by between 42% and 46% relative to the prior period, while EBITDA is expected to increase by between 24% and 28%. Headline earnings for the period are expected to increase by between 45% and 52%. On a normalised basis, the continuing operations´ revenue is expected to increase by between 41% and 45%, EBITDA is expected to increase by between 14% and 18%, and headline earnings are expected to increase by between 22% to 28% from the prior period. The primary difference between continuing operations and the normalised continuing operations´ results relates to approximately R6 million (after tax) of non-recurring costs relating to restructuring (H1 FY18 R35 million). The table below illustrates expected earnings per share and headline earnings per share on a normalised basis during the half-year financial period. 31 August 31 August 31 August FY18 FY19 FY19 (cents) Between (cents) % range between Total operations Headline earnings per 55 84 - 86 52% - 57% share Earnings per share 38 79 - 83 109% - 118% Continuing Operations Headline earnings per 57 69 - 73 22% - 28% share Earnings per share 54 73 - 77 36% - 43% Discontinued operations As announced to shareholders on SENS on 26 July 2018, Altron concluded the disposal of Powertech Transformers, which was the largest business in the held-for-sale group. Agreement has been reached to sell Altech UEC, the last non-core control asset. This agreement is subject to a number of conditions precedent including Competition Commission approval. The final conditions are expected to be concluded by the end of November 2018. The significantly improved performance out of the discontinued businesses against the prior period has contributed to the ongoing improvement in both earnings and headline earnings per share. The half-year financial results for the period to 31 August 2018 are expected to be released on SENS on 25 October 2018. This statement has not been reviewed or reported on by the company´s auditors. By order of the Board. Johannesburg 25 September 2018 Sponsor Investec Bank Limited Date: 25/09/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.