Reunert Limited · JSE:RLO
Reunert — H1 FY2025 Earnings Presentation
27 slides from Reunert's earnings presentation, May 28, 2025
Slide 1: Interim Results Presentation for the Six Months Ended 31 March 2025
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 MARCH 2025
Slide 2: Contents
CONTENTS 1 Performance overview 2 Interim financial results 3 Reunert’s resilience and Investment Case 4 Segment reviews 5 Prospect Statement 6 Investment case 7 Key upcoming events 2
Slide 3: Performance overview
01 performance overview Reuert
Slide 4: Performance overview
PERFORMANCE OVERVIEW Challenging period with improved prospects in H2 FY25 H1 FY25 results Group’s position Key drivers of performance (Continuing operations) ˃ Deteriorating South African macroeconomic 5% environment resulting in: Revenue R6 218m ˃ Disposal of loss-making battery storage concluded,
Slide 5: Interim financial results
02 INTERIM FINANCIAL RESULTS 5
Slide 6: Consolidated statement of profit or loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Continuing operations % Rm H1 FY25 H1 FY241 1 Revenue has decreased by 5% due to: change 1 Revenue 6 218 6 515 5 2% growth in the Electrical Engineering Segment revenue Operating expenses (5 649) (5 809) > Positive growth in circuit breaker volumes outside SA
Slide 7: Consolidated statement of profit or loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Continuing operations % Rm H1 FY25 H1 FY241 change 2 16% decline in operating profit Revenue 6 218 6 515 5 The overall decline in revenue was a key contributor to a lower operating profit affecting the: Segment operating profit 561 636 12 Applied Electronics
Slide 8: Consolidated statement of profit or loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Continuing operations % Rm H1 FY25 H1 FY241 change 3 18% decrease in profit before tax Revenue 6 218 6 515 5 ˃ Cash management remained effective Operating expenses (5 649) (5 809) ˃ Overall interest was impacted by lower interest Operating profit before impa
Slide 9: Consolidated statement of profit or loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Continuing operations % Rm H1 FY25 H1 FY241 4 Decrease in continuing operations earnings: change Revenue 6 218 6 515 5 Decrease ˃ HEPS - (20%)in: - (58) cents per share Operating expenses (5 649) (5 809) ˃ EPS˃ HEPS of 20% - (18%) - (53) cents per (58) sharec
Slide 10: Consolidated statement of profit or loss: Discontinued operation
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Discontinued operation Rm H1 FY25 H1 FY24 5 Loss from the discontinued operation: Revenue 35 127 > Sale process for the Group’s 51% share in Blue Nova commenced and all criteria were met to classify the Segment operating loss (40) (24) business as: Impairment
Slide 11: Consolidated statement of financial position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Debt well within covenants with no gearing on ‘a net cash basis’ Rm Mar 2025 Mar 2024 Sep 2024 1 Assets and liabilities held for sale relates to Blue Nova, the PP&E, investment property, ROU assets & IA 1 826 1 927 1 900 discontinued operation Goodwill 1
Slide 12: Cash flow analysis
1 Increased investment into working capital due to build up for large defence H2 CASH FLOW ANALYSIS 2 FY25. Working capital remains well controlled Free cash flow covers the interim dividend for the period 1,5 times Group cash generation supports operational and strategic objectives and dividend pay
Slide 13: Capital expenditure
CAPITAL EXPENDITURE Rm Rm 103 Rm H1 FY25 H1 FY24 103 103 Plant and equipment 34 36 84 84 Capital work in progress 28 5 40 18 53 Intangible assets 24 11 Cyber security and IT investment 11 16 57 Other 6 16 29 34 Total 103 84 50 30 25 27 4 7 H1 FY25 H1 FY24 H1 FY25 H1 FY24 Electrical Engineering Repla
Slide 14: Reunert's resilience and investment case
02 03 REUNERT’S RESILIENCE AND INVESTMENT CASE 14
Slide 15: Reunert's resilience and agility
REUNERT’S RESILIENCE AND AGILITY Challenges Reunert’s attributes Growth Opportunities ˃ Diversified portfolio of ˃ Underperforming South African macroeconomic environment high quality assets ˃ SA infrastructure (public- ˃ Prudent capital allocation ˃ Global uncertainty private partnerships) ˃ Strong
Slide 16: Segment reviews
04 SEGMENT REVIEWS 16
Slide 17: Electrical Engineering
ELECTRICAL ENGINEERING Resilient segment result under difficult local market conditions with growing non-South Africa revenues Drivers Financial Performance Outlook & Prospects Strong non-SA performance driven by improved period-on- SEGMENT REVENUE (Rm) Constrained local market conditions expected t
Slide 18: ICT
ICT Solid performance amid low growth local market conditions Drivers Financial Performance Outlook & Prospects Successful merger of IQbusiness and +OneX SEGMENT REVENUE (Rm) Market outlook ˃ engaged and motivated management team resulting in stronger ˃ local economic outlook likely to result in cur
Slide 19: Applied Electronics | Defence
APPLIED ELECTRONICS| DEFENCE Maintained strong strategic positioning and on track for an improved full-year financial performance Drivers Financial Performance Outlook & Prospects Defence Cluster financial performance impacted by a key fuze SEGMENT REVENUE* (Rm) Expected strong H2 FY25 performance r
Slide 20: Applied Electronics | Renewable Energy
APPLIED ELECTRONICS| RENEWABLE ENERGY Renewable RE Cluster profitability underpinned by strong solar energy business performance Energy Drivers Financial Performance Outlook & Prospects Increase in profitability for solar energy business EFFECTIVE INTEREST IN SOLAR ASSETS* (BOOS) – (MW) Solar energy
Slide 21: Prospect statement
05 PROSPECT STATEMENT 21
Slide 22: Prospect statement
PROSPECT STATEMENT ˃ The global and South African macroeconomic environment experienced in H1 FY25 is expected to continue for the remainder of the financial year ˃ Notwithstanding this, the Group anticipates a marked improvement in financial performance in H2 FY25 when compared to these interim res
Slide 23: Investment case
06 INVESTMENT CASE 23
Slide 24: Reunert's investment case
REUNERT’S INVESTMENT CASE Delivering sustained financial performance through strategic initiatives and organic growth, disciplined capital allocation and a strong balance sheet Strategically aligned, diversified portfolio of Growth strategies focused on Solid cash generation and a high-quality asset
Slide 25: Key upcoming dates
07 Ixey UPCOMING DATES Rewert 25
Slide 26: Key upcoming dates
KEY UPCOMING DATES ˃ CAPITAL MARKETS DAY PROGRAMME ˃ Overview of the Electrical Engineering Segment, African Cables and Zamefa ˃ Tour of African Cables, Vereeniging ˃ Overview of Low Voltage ˃ Tour of Low Voltage, Elandsfontein > Capital Markets Day 18 June 2025 > RMB Big 5 Conference 17 – 18 Septem
Slide 27: Q&A Contact us
Q&A Contact us karens@reunert.co.za 27