AEL: ALLIED ELECTRONICS CORPORATION LIMITED - Altron Trading Statement and Business Update for the year ended 28 February 2018
Altron Trading Statement and Business Update for the year ended 28 February 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 YEAR ENDED 28
FEBRUARY 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 the strategy of refocusing the Altron group and consistent with the prior period, the
financial results for the year ended 28 February 2018 have been split between continuing and
discontinued operations. The Board believes that, due to the current restructure and right-sizing of
the business, as well as the disposal or closure of non-core operations, the normalised continuing
operations´ results provide stakeholders with an accurate measure of the core sustainable earnings
of Altron going forward.

Continuing operations

During the financial year the Altron group restructured a number of its core operations to position
itself for growth in the ICT sector. The core of its operations have had a satisfactory performance
for the year ended 28 February 2018. Altron also announced on SENS on 29 September 2017 the
acquisition of Phoenix Software in the UK which positively contributed to revenue and EBITDA
since the conclusion of this transaction.

On a normalised basis, the continuing operations´ revenue is expected to increase by between
10% and 12%, while EBITDA is expected to increase by between 14% and 18%.

The primary difference between continuing operations and the normalised continuing operations´
results relates to approximately R60 million (after tax) of non-recurring costs relating to
restructuring.

It is also important to note that the issue of additional shares in March 2017 to the group´s strategic
shareholder, Value Capital Partners, has diluted certain performance metrics by approximately
10%, while the reduction in core debt will not be fully captured in those metrics.

The table below illustrates expected earnings per share and headline earnings per share after
normalising for once-off costs during the financial year:

                          28 February            28 February            28 February
                          FY17                   FY18                   FY18
                          (cents)                Between (cents)        % range between

Total operations
Headline earnings per     72.2                   132 - 146              83% - 102%
share
Earnings per share        (53.5)                 63 - 74                218% - 238%

Continuing
Operations
Headline earnings per     115.5                  132 - 137              14% - 19%
share
Earnings per share        118.1                 122 - 129                3% - 9%

Discontinued operations

At year end, the Powertech group, Altech Multimedia and Altech Autopage continue to be
classified as discontinued operations for reporting purposes. As communicated to shareholders
through SENS on 4 April 2018 the last of the conditions precedent with regards to the disposal of
Powertech Transformers is expected to be fulfilled by 31 May 2018. Altron expects to complete the
disposal of the remaining discontinued operations, CBI Telecom Cables and Altech Multimedia, in
the current financial year. A combination of the disposal of loss making operations and improved
performance out of the remaining discontinued businesses has resulted in the material
improvement in both earnings per share and headline earnings per share when compared to the
prior year.

Year-end results before normalisation for once-off costs:

                          28 February           28 February         28 February
                          FY17                  FY18                FY18
                          (cents)               Between (cents)     % range between

Total operations
Headline earnings per     70.9                  111 - 125           57% - 77%
share
Earnings per share        (54.6)                43 - 53             178% - 197%

Continuing
Operations
Headline earnings per     114.3                 115 - 122           1% - 7%
share
Earnings per share        116.6                 106 - 111           (9%) - (4)%

The financial results for the period to 28 February 2018 are expected to be released on SENS on
10 May 2018.

This statement has not been reviewed or reported on by the company´s auditors.

By order of the Board.


Johannesburg
12 April 2018


Sponsor
Investec Bank Limited

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