REUNERT LIMITED - Operating environment, share-based payments and strategy update

Operating environment, share-based payments and strategy update

REUNERT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1913/004355/06)
JSE and A2X share code: RLO
ISIN: ZAE000057428
(“Reunert” or the “Company” or the “Group”)

OPERATING ENVIRONMENT, SHARE-BASED PAYMENTS AND STRATEGY UPDATE

This voluntary operational update outlines Group trading conditions for the year ending 30 September 2026
(“FY2026”). This announcement does not provide earnings guidance. Reunert shareholders are referred to the
“Prospects” statement in the unaudited interim results for the 6 months ended 31 March 2026
(“Interim Results”), released on SENS on 22 May 2026, for further information in this regard.

Operating environment
The second half of FY2026 continued to be challenging. The main pressures experienced by the Group were:
•   weak infrastructure-led demand in South Africa and Zambia;
•   the sustained strength of the Rand and Kwacha, which adversely impacted Reunert’s export businesses;
    and
•   order timing and supply-chain disruption arising from the conflict in the Middle East.

In the Electrical Engineering Segment, demand for power cables across the Group’s businesses in South Africa
and Zambia has remained weak. Accordingly, management has decided to restructure the operating facilities
in South Africa to align with current demand, while retaining core technical and production skills, as well as plant
capacity. This will provide the Group with flexibility to scale up production should demand increase.

Internationalisation remains core to Reunert’s strategy, with 40% of the Group’s revenue being generated
outside South Africa in hard currency. While geographic diversification remains a strategic focus for Reunert,
the stronger Rand and Kwacha have constrained margins in power cables, circuit breakers and defence
businesses. Despite these challenges, the longer-term Defence Cluster order book and end markets remain
strong, with circuit breaker export volumes to the United States continuing to grow.

The Information and Communication Technology Segment has continued to benefit from the restructuring and
optimisation initiatives undertaken in the prior year, offset by lower than anticipated volumes and margins, and
operational challenges at Nashua.

Share-based payments
The FY2026 results may be affected by the remeasurement of the Group’s cash-settled Employee Share
Ownership Plan (“ESOP”) in accordance with International Financial Reporting Standards (“IFRS”) 2 – Share-
based Payment, as disclosed in the Interim Results. The resulting charge is driven by the Reunert share price
ahead of the vesting of awards under the ESOP in April 2027.

Strategy update
These pressures experienced by the Group do not change Reunert’s conviction in the longer-term opportunities
across its three segments. Management has completed the strategic refresh with refined execution, disciplined
capital allocation and focus on the strongest value-creation opportunities.
The establishment of the independent electronic artillery fuze joint venture with CSG in Slovakia is progressing
well. In addition, the acquisition of Silversoft has been completed, adding enterprise software and digital
capabilities to iqbusiness’ service offering.

Reunert’s Capital Markets Day, scheduled to take place on Wednesday, 2 September 2026, will focus on the
Applied Electronics Segment’s growth opportunities and execution priorities. The presentation will be made
available on the Reunert website at https://reunert.co.za/presentations from 09:00 (SAST) on the same day.

The Group’s results for FY2026 are expected to be released on SENS on or about Friday, 20 November 2026.

The information contained in this announcement has not been reviewed or reported on by the Company’s
external auditors.


Johannesburg
31 August 2026

Sponsor
One Capital
Date: 31/08/2026 15:00:00
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