Altron Trading Statement, Strategic Update and Renewal of Cautionary Announcement Allied Electronics Corporation Limited (Registration number 1947/024583/06) (Incorporated in the Republic of South Africa) Share Code : AEL ISIN: ZAE000191342 Share Code : AEN ISIN: ZAE000191359 (“Altron” or “the company”) Altron Trading Statement, Strategic Update and Renewal of Cautionary Announcement Trading Statement Shareholders are referred to the company’s trading statements released on SENS on 22 January 2015 and 31 March 2015 respectively and are advised as follows: The Altron TMT division (telecommunications, multi-media and IT businesses) has experienced a decline in profit levels notwithstanding the strong performance of the IT businesses which was insufficient to offset the deterioration in the telecommunications and multimedia businesses. In particular: - the Multimedia division was significantly impacted by a combination of reduced order intake in its core set top box business in Africa, the loss of the Samsung TV assembly contract and the impact of the NUMSA strike in July 2014. The business which has already undergone a significant rightsizing process, has seen its order book improve in recent months and has an encouraging pipeline of local and international prospects including the South Africa digital migration program. - the recently launched Altech Node, has performed below expectations, with regard to retail customer take-up. Altron TMT is well advanced in terms of exploring alternative opportunities for this business. - the anticipated recovery in the performance of Altech Autopage did not materialise in the second half, as market saturation and price deflation offset cost saving gains. The Altron Power division (Powertech businesses) experienced a deterioration in their performance resulting in a break even position at headline earnings level. Most of the businesses were affected by challenging macro-economic conditions, namely the four week NUMSA strike in July, weak economic growth and the various challenges created by Eskom’s current position. More specifically: - the transformers division experienced an extremely challenging year, posting a substantial loss. This was caused by poor order inflows from its largest customer, Eskom, particularly in the larger units; the disruption caused by the NUMSA strike accentuated by poor productivity levels; as well as the non-recurring costs incurred to close its Johannesburg manufacturing facility. The imminent designation of transformers should assist going forward, but the resumption of normal purchasing patterns from Eskom is critical to the future success of this business. - Encouragingly, the cables division posted much improved results, despite the strike, following the restructure of a number of its factories and production lines in previous years. The South African operations expanded into new markets and territories to compensate for the downturn in Eskom’s demand and benefitted from more stable pricing and margins. The Iberian cables businesses have returned to profitability and the Namibian cables business performed well. Altron Corporate has also recorded a marked decline in earnings, primarily as a result of the increased interest cost associated with the borrowings taken on to delist Altech in the last financial year. Altron’s balance sheet remains resilient and the group continues to be well inside its debt covenants. Accordingly, shareholders are advised that a reasonable degree of certainty exists that the company’s headline earnings per share for the financial year ended 28 February 2015 is expected to be between 45% - 55% lower (between 85 cents and 103 cents) as against the previous corresponding period (188 cents). Basic earnings per share which incorporates various significant impairments is expected to be between 95% and 110% lower (between 10 cents and a loss of 19 cents) as against the previous corresponding period (192 cents). Shareholders are further advised that Altron’s normalised headline earnings per share is expected to be between 45% - 55% lower (between 93 cents and 113 cents) as against the previous corresponding period (206 cents). The normalised headline earnings per share disclosure adjusts headline earnings for various once off costs which are either non- operational or associated with accessing benefits that would only be realised in subsequent reporting periods. Altron’s annual financial results for the year ended 28 February 2015 are expected to be announced on or about Wednesday, 13 May 2015. This trading statement has not been reviewed or reported on by Altron’s external auditor. New Strategic Direction: As highlighted in Altron’s trading statement of 31 March 2015, the board has undertaken a fundamental review of the group’s business strategy. This has resulted in the development of a plan to focus the group in certain areas where the board believes the group has the resources, competence and skills to leverage a competitive advantage. In the process, certain material non-core assets have been identified for disposal and the group is exploring strategic equity and technology partnerships with global industry players in other areas of the business. Furthermore, particular emphasis is being placed on the need to significantly reduce central costs by creating a leaner management structure. The group is currently addressing each of these initiatives, which are at different stages of completion. Further announcements will be made at the appropriate time. Renewal of Cautionary Announcement Further to the renewal of cautionary announcement released on SENS on 5 March 2015, shareholders are advised that the company is still in discussions and negotiations, which if successfully concluded may have a material effect on the company’s securities. Accordingly shareholders are advised to continue exercising caution when dealing in the company’s securities until a further announcement is made. By order of the board. Johannesburg 16 April 2015 Sponsor Investec Bank Limited Date: 16/04/2015 05:05:00 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.