1 www'altron'co'za

1
Altron Group Investec Securities Mid/Small Cap
Conference20 June 2002
Robert E Venter Chief Executive
2
Agenda

• Strategy
• Management structure
• 2002 financial results
• Strategic partners and customers
• Segmental review
• Strategy revisited
• The road ahead
• Questions answers

3
Strategy
4
Corporate activity 2001/2002

• Fintech delisted - cost R130m
• Powertech shareholders approve scheme of
  arrangement at R4.00 combined with special
  dividend of R1.00 - delisting to be completed in
  June
• Group reduced from 9 listed entities 18 months
  ago to 3
• Powertech sells 29 Voltex stake for R130m
• Empowerment initiatives concluded with
• Ikwezi (Aberdare Rentech)
• Merger of Labat Africa Altech IT assets
  announced
• Maseco System Integrators (BTN Cape Town)
• Disposal of Alcatel Altech Telecoms announced for
  R300 - R350m
• Altron share repurchase totals 9.3 costing R222m
• Further acquisitions and disposals concluded
  during year

5
Management structure
Office of the Chairman
Dr. WP Venter Chairman Altron
GJ Trollope Group Executive
Dr. HA Serebro Snr. Executive Director
RE Venter CEO Chairman ofExecutive
Committee Altron
Diane Radley CFO
Adv. DC Mpofu Corporate Affairs
PMO Curle Corporate Finance
Members of the Executive Committee
IP Pennel CEO Fintech
N Claussen CEO Powertech
CG Venter CEO Altech
PD Redshaw Chairman BTG
6
Financial resultsfor year-end28 February 2002
7
Financial highlights
8
Summary Group income statement
R million
2002
2001
change
11
Revenue
8 951


9 900

22 4
Operating income Income before taxation Income
after taxation Attributable earnings
627 735 589 298
763 746 550 308
8 28 19
103.3 101.5 31.0
Basic EPS cents Headline EPS cents Dividend
per share - cents
111.9 129.5 37.0
9
Summary Group balance sheet
R million
2002
2001
change
2 229 4 066 1 125 1 860 - 1 081 6 295
Assets Non-current assets Current assets
Inventories Accounts receivable Voltex sale
proceeds Net cash and cash equivalents Total
assets
2 402 4 678 1 106 2 027 101 1 445 7 081
8 15 (2) 9 - 34


5 49 16 17 19
3 403 694 2 108 6 295 615.7
3 581 1 036 2 464 7 081 725.1
Equity and liabilities Shareholders
interest Non-current liabilities Current
liabilities Total equity and liabilities Net
asset value per share - cents
10
Summary Group cash flow
R million
2001
2002

Operating activities
314


585


Cash generated by operations
798


858

85
Net investment income
81



Changes in working capital
(174)



239
Taxation paid
(217)

(244)

Cash available from operating activities
488

937

Dividends paid
(175)

(352)

Investing activities
(408)

(269)


Financing activities
265


(51)





Net funds generated
170

264


11
Group structure

Op income R762.8m HEPS up 27.5 Cash R1.4 billion
59.6
54.7
53.5


JSE listed
Op income R109.9m Adjusted HEPS 40 cps Cash
R222m
Op income R216.4m HEPS up 26.2 Cash R440m
Op income R357.3m HEPS up 21.5 Cash R597m
12
Market performance
13
See through valuation
Sum of parts R2 993m
cent per share
R603m
Value gap
1011
Rm
R550m or 18
R777m
827
R349m
Powertech59
R1 264m
BTG55
R2 443m Market cap 31/05/02
Altech54
0
14
Group results overview
2nd half
1st half
CAGR15
Operating income
5 year CAGR16
Revenue
R m
R m

5 Year CAGR15
Actual HEPS
Return on capital employed
Cents
15
Hard currency revenues
Exports and foreign-owned operations
23of total revenues
2002
2001
24
18
16
Global reach
Foreign income in over 75 countriesexceeding
R2.2 billion
UK
Europe
North AmericaSan Diego, USA
Porto, Portugal Zaragoza, Spain
AsiaMalaysia
Operational presence Export destinations
AfricaSouth Africa, Botswana, Mauritius,
Mozambique, Namibia, Swaziland, Zambia
AustraliaSydney
17
Exports per region
18
Strategic partners
19
Key customers
20
Segmental review
21
Contribution per segment
Revenue
2002
2001
22
Contribution per segment
Operating profit
2002
2001
23
Contribution per sub-holding company
Revenue
2002
2001
24
Contribution per sub-holding company
Operating income
2002
2001
25
Telecoms

• Macro economic scenario
• Global
• Telco's remain over-geared and suffer from
  effects of misjudged expansion
• Overpayment for 3G licences
• Markets remain weak, infrastructure spend
  depressed
• Sector will benefit from global economic upswing
• Local/company specific
• Regulatory uncertainty
• Delays in issue of SNO license and in Telkoms
  IPO
• Offset by initial infrastructural spend by
  Transtel, Esi-Tel,Cell C for optical fibre
  cable, rectifiers and standby batteries
• Capex meaningful at Vodacom, MTN and Telkom
• Subscriber growth at Autopage and Netstar driven
  by consumer demand

26
Future telecom environment
Governing bodies
Fixed Line Telecom Network Operators
3rd NO
Fully liberalised market multiple telecom
players competing
Telkom
SNO
year
2000
2002
2008
2004
2006
Cellular Telecom Network Operators
Vodacom
Cell-C
MTN
27
Key policy factors relating to SNO

• Equity structure
• Foreign technology partner 51
• Eskom Enterprises/Transtel 30
• Black Economic Empowerment 19
• Binding bids by end Aug 2002
• Community service obligations
• Share Telkom facilities for 2 years
• Criteria

28
Cabled-fibre demand by region
Fiber-km (UUU)
29
Telecoms
Portfolio of assets product and services
30
Telecoms
Portfolio of assets competitive position
31
Multimedia electronics

• Macro economic scenario
• Global
• Challenges with iTV, Kirsch Media and NTL but
  still niche growth opportunities
• Local/company specific
• Deregulation will increase demand for multimedia
  products
• Impact of upward pressure on inflation and
  interest rates
• GDFI growth remains erratic
• Government committed to increased capital
  expenditure
• Efficiencies from group rationalisation will flow
  through

32
Multimedia electronics
Portfolio of assets products and services

33
Multimedia electronics
Portfolio of assets competitive position
34
Information technology

• Macro economic scenario
• Global
• Signs of slow recovery in global economy led by
  US, but contradictory corporate signals (IBM vs.
  Intel vs. Cisco)
• Equity markets still expensive (SP PE of 42)
• TMT stock prices stabilising, expected to recover
• Sector will benefit from economic upswing, likely
  to be more sustained in EU than US
• Local/company specific
• Industry competitive with consolidation
  opportunities
• IT spending under pressure and based on ROI
• BEE essential

35
Information technology market sector
Bytes Technology Group
Financial Mail IT rankings 2002 (31 May, 2002)
36
Information technology
Portfolio of assets products and services






37
Information technology
Portfolio of assets competitive position






38
Fintech overview

• Incorporated into Altron Corporate
• 2002 results
• New capital financed R476m
• Revenue R216.2m
• Operating income R65.7m

39
Altron strategy revisited
Simplify structure
Reduce complexity and entry points
Divest non-core assets
Focus on high growth opportunities
Global expansion
Succession planning
Increase shareholder value
40
The road ahead

• Utilisation of cash through acquisition
• BTG and Altech with off shore focus
• Continue review on core vs. non-core assets
• Strategic review being completed on Fintech
• Group product vs. non-group product
• Where should group assets be housed?
• Will keep options open re further restructuring
  in terms of listed entry points but fundamental
  conditions are different at Altech and BTG when
  compared to Fintech and Powertech
• Group has been focused and restructured
  significantly emphasis now on driving benefits
  through earnings

41
Thank youQuestions and answers