REUNERT LIMITED - Operational update and trading statement

Operational update and trading statement

Reunert Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1913/004355/06)
JSE code: RLO
ISIN: ZAE000057428
(“Reunert”, the “Company” or the “Group”)

OPERATIONAL UPDATE AND TRADING STATEMENT

Reunert is in the process of finalising its interim financial results for the six-month period ended
31 March 2021 (“Results”). The board of directors of Reunert (“Board”) will consider and is expected
to approve the Results on 24 May 2021 for publication on SENS on 25 May 2021.

Accordingly, shareholders of Reunert (“Shareholders”) are provided herein with:
• an operational update; and
• the resulting trading statement.

Operational update

Reunert’s overall financial results for the period ending 31 March 2021 (“H1:2021”) have improved
notably compared to the prior period. However, the recovery of the H1:2021’s operating profit to pre
COVID-19 levels continued to be negatively affected by the reduced economic activity associated with
the pandemic, specifically during the second wave which occurred in South Africa during January and
February 2021.

The Group’s segmental operating profit, before impairment of financial assets, reflected an increase in
performance, and pleasingly, are largely in line with the guidance provided in the 2020 financial year
end results. The Results include a good recovery in profitability in the Electrical Engineering Segment
and an Information Communication Technology (“ICT”) Segment performance in line with expectations.
The Applied Electronics Segment was negatively impacted by lower than anticipated export sales and
a stronger Rand. Our Group companies have fully adjusted to the new operating conditions required by
COVID-19 and are operating smoothly, albeit at slightly lower volumes than the prior comparative
period.

Importantly, the Quince book has performed in line with our expectations in H1:2021, with no further
increases in expected credit losses (ECL) or credit write-offs being incurred. This, coupled with no
impairment needed at our businesses, led to an improvement in attributable profit for the period.

The Group has continued to deliver on its program of operational efficiencies and execution of its
strategy. The Solutions and System Integration cluster in the ICT Segment is in the process of
concluding strategic acquisitions in the Cloud and Custom Software areas. The Total Workspace
Provider cluster continued its investment and growth in Complementary Services. There was a
significant increase in investment in build, own, operate (BOO) solar assets in our renewable energy
business and the Group reduced its ownership of our cable asset in Zimbabwe. The Group also
commenced a share buy-back program during H1:2021.

Trading Statement

In terms of paragraph 3.4(b) of the JSE Limited Listing Requirements, issuers are required to publish a
trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported on will differ by at least 20% from those of the prior
comparative period.

Shareholders are accordingly advised that the Group has reasonable certainty that it will report:
   • basic earnings per share of between 177 cents and 211 cents compared to a basic loss per
       share of 172 cents for the prior comparative period; and
   • headline earnings per share of between 185 cents and 201 cents compared to the headline
       loss per share of 76 cents for the prior comparative period.

The information contained in this announcement does not constitute an earnings forecast. The financial
information on which this announcement is based has not been reviewed nor reported on by the
Company’s external auditors and is the responsibility of the Board.

Johannesburg
11 May 2021

Sponsor
One Capital

Date: 11-05-2021 04:33:00
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