DENEL SOC LIMITED - Denel SOC condolences to families of RDM explosion victims

Denel SOC condolences to families of RDM explosion victims

DENEL SOC LIMITED
Registration number: 1992/001337/30
JSE Alpha Code: BIDEN
(“Denel” or “Denel SOC” or the “Company”)

DENEL SOC CONDOLENCES TO FAMILIES OF RDM EXPLOSION VICTIMS

The Board of Directors and Management of Denel SOC have been deeply saddened by the tragic
events that resulted in eight employees of Rheinmetall Denel Munitions (“RDM”) losing their lives in
an accident at the Company’s premises in Somerset West yesterday afternoon.

RDM management has confirmed that after the explosion at its propellant operations building, which
led to the unfortunate fatalities, the affected area has been cordoned off as it was declared unsafe.
The Company has taken all the necessary precautions to enable an investigation into the accident to
commence today.

Our deepest condolences go to the families of our departed colleagues. Flags are flying at half-mast
at all Denel sites in support of Rheinmetall, the employees and the families of those who lost their
lives.

Denel SOC is a 49% strategic partner to Rheinmetall, a company of German origin. The two companies
are run independently of each other with different boards and management structures.

Rheinmetall Waffe Munition (“RWM”) in Germany and Denel SOC concluded an equity partnership in
2007 wherein a majority interest in Denel’s Munition business was sold to RWM with a 51% (RWM)
and 49% (Denel) equity shareholding. The company became known as Rheinmetall Denel Munitions
(RDM).

RDM specializes in the design, development and manufacture of large- and medium-caliber
ammunition and is a world leader in the field of artillery, mortar and infantry systems and plant
engineering.

Its business focus is in Asia, the Middle East, South America, South Africa, other African countries and
Europe via Rheinmetall AG. Its product portfolio includes large-calibre ammunition (76mm to
155mm), artillery projectiles, propellant, charges, pyrotechnic carriers, mortar bombs, 40mm
grenades and various missile subsystems.

The rationale for the partnership was to ensure commercial viability of the Denel SOC business unit
through gaining access to markets and capability to provide industrial leadership and invest in plant
renewal and technology

The set objectives have been largely achieved as the former Denel division was transformed into the
profitable world class business that it is today. RDM currently exports around 85% of its revenue.


4 September 2018
Debt Sponsor: Nedbank Corporate and Investment Banking

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