PRESENTATION TO INVESTORS

FOR THE YEAR ENDED 30 SEPTEMBER 2015

2

AGENDA

• GROUP OVERVIEW – Alan Dickson, CEO

• FINANCIAL OVERVIEW – Nick Thomson, CFO

• SEGMENTAL DISCUSSIONS

• ICT – Mark Taylor

• Applied electronics – Peter van der Bijl

• Electrical engineering – Alan Dickson

• GROUP STRATEGY AND PROSPECTS – Alan Dickson

GROUP OVERVIEWAlan Dickson

4

OVERVIEW

• Positive operational performance, despite a tough macro-economic environment

• The expected economic growth rates have slowed materially

• No indication of a significant improvement in the medium term

• Reunert has delivered on its 2014 commitments

• No material once-off costs

• All loss-making business units have been restored to profitability

• Growth achieved in all segments

› ICT: underpinned by stabilising office automation business model and excellent performance

from voice and finance businesses

› Applied electronics: boosted by hard currency export orders and securing the multi-year

Radiate contract

› Electrical engineering: driven by volume growth, efficiency enhancements and the award of several

long-term frame contracts

• Steady progress has been made on the execution of the group strategy that was approved in April 2015

5

OVERVIEWCONTINUED

• Revenue up 7% from R7,8 billion to R8,3 billion

• Operating profit up 15% from R1 017 million to R1 167 million

• Strong free cash flow of R1 146 million, excluding the Nashua Mobile sale proceeds

• NHEPS (continuing operations) up 29% to 568 cents per share

• Final dividend of 302 cents per share has been declared

• Total dividend per share up 10% to 407 cents per share

6

(30%)

(20%)

(10%)

0%

10%

20%

REUNERT LTD ELECTRONIC AND ELECTRICAL EQUIPMENT INDEX - J273

SHARE PRICE PERFORMANCE

Sep 2014 Sep 2015

FINANCIAL OVERVIEWNick Thomson

8

NASHUA MOBILESUBSCRIBER BASE SALE

• R1,4 billion profit on disposal accounted for in 2014

• All base sale proceeds have been received (R1,8 billion net of tax)

• R42 million profit from discontinued operations in 2015

• EPS effect: 26 cents (2014: 966 cents)

• Back office support will continue until 2019

• Customer support (operation of call centre)

• Computer processing costs

• Maintenance of mainframe IT hardware and software

• Maintenance of records (no permanent staff)

• Potential future tax queries and audits

• Sufficient residual provisions to cover expected costs

9

FINANCIAL RESULTSGROUP INCOME STATEMENT – ALL OPERATIONS

2015 2014 % change

Revenue Rm 8 300 7 774 7 ▲

EBITDA Rm 1 284 1 125 14 ▲

Depreciation & amortisation Rm (117) (108)

Operating profit Rm 1 167 1 017 15 ▲

Net interest income/(expense) Rm 135 (10)

Profit before abnormal items and tax Rm 1 302 1 007 29 ▲

Abnormal items Rm - (327)

Tax Rm (360) (278)

Share of JV profit/(loss) Rm 17 (12)

Profit from continuing operations Rm 959 390 146 ▲

Profit from discontinued operation Rm 42 1 584

Profit for the year Rm 1 001 1 974 (49) ▼

HEPS Cents 588 506 16 ▲

NHEPS Cents 580 553 5 ▲

10

FINANCIAL RESULTSSALIENT FEATURES – CONTINUING OPERATIONS

2015 2014 % change

Revenue Rm 8 300 7 774 7 ▲

EBITDA Rm 1 284 1 125 14 ▲

Operating profit Rm 1 167 1 017 15 ▲

Earnings per share Cents 579 235 146 ▲

HEPS Cents 576 391 47 ▲

NHEPS Cents 568 439 29 ▲

EBITDA % 15,5 14,5 7 ▲

Operating profit margin % 14,1 13,1 8 ▲

Final dividend per share Cents 302 275 10 ▲

Dividend per share Cents 407 370 10 ▲

Dividend yield % 6,7 6,2 8 ▲

1111

FINANCIAL RESULTSREVENUE

• The cable businesses increased

market share, renewed long-term

contracts with good draw downs in

the current year and returned to

normal sales levels to the mining

industry after 2014 strikes

• Product sales in the circuit breaker

business performed well while

contribution from the solutions

business was disappointing

• Nashua OA repositioned its market

offering with a negative impact on

pricing but a positive impact on

market share

• Excellent voice minute growth

in ECN at lower connection rates

• Significant export orders secured

by Reutech and delivered in H2

7 774 8 300

447

81 6

8

2014 Electricalengineering

ICT Appliedelectronics

Other 2015

MOVEMENT IN GROUP REVENUE (Rm)

1212

3%2%1%

8%

1%

4%

4%

1%

7%

1%

FINANCIAL RESULTSREVENUE

48%

40%12%

% REVENUE CONTRIBUTION*

2015

Electrical engineering

ICT

Applied electronics

Other

45%

43%

12%

2014

% REVENUE BY REGION

83% 2015South Africa

Africa

Asia

Australia

Europe

North America

South America

<1%

84% 2014

*Continuing operations

1313

42%47%

15%

FINANCIAL RESULTSOPERATING PROFIT

* Excludes Other segment of (4%) in FY2015 and (3%) in FY2014

• Improved volumes resulting in

improved fixed cost recoveries at

African Cables augmented by cost

control

• Nashua optimised supply chain and

realised savings in distribution and

general overhead costs

• ECN increased customer base and

both outgoing and incoming minutes

• Significant cost savings in Nashua

Communications

• Reutech delivered a good result

despite slow down in the radar and

communications divisions

1 017 1 167

65

80 11

6

2014 Electricalengineering

ICT Appliedelectronics

Other 2015

MOVEMENT IN OPERATING PROFIT (Rm)

OPERATING PROFIT CONTRIBUTION* (%)

Margin

13,1%

Margin

14,1%

2015

Electrical engineering

ICT

Applied electronics

36%

53%

14%

2014

14

1 408 1 146 2 221

62133

1 789 19

415 42104

629

Cashgenerated

fromoperations*

Workingcapital

Netinterest

Taxpaid

Capexreplacement

Freecash flow

Capexexpansion

Dividendspaid

NashuaMobile

Other Increasein cash

resources

FINANCIAL RESULTSCASH FLOW AND WORKING CAPITAL

MOVEMENT IN CASH FLOW (Rm)

* Before working capital movement

WORKING CAPITAL MOVEMENT (Rm) 2015 2014

Inventory and contracts in progress 24 128

Accounts receivable and derivative assets (84) 85

Trade and other payables, provisions and derivative liabilities (243) (180)

Advance payments 365 (77)

62 (44)

15

FINANCIAL RESULTSBALANCE SHEET SUMMARISED

FY15 FY14

PP&E and intangible assets 745 722

Goodwill 653 649

Non current investments and loans 253 241

Net assets of discontinued operation (excl cash) 2 1 653

Rental and finance lease receivables 2 191 2 187

Net working capital 691 969

Long and short-term liabilities (440) (434)

Deferred tax (6) (70)

Cash and cash equivalents of continuing operations 2 636 415

Net assets 6 725 6 332

Equity 6 725 6 332

16

FINANCIAL RESULTSEFFICIENCY INDICATORS – CONTINUING OPERATIONS

FY15 FY14

Inventory turnover Times 5,5 5,5 ►

Trade receivables Days 53 43 ▼

Trade payables Days 57 60 ▼

Net worth (NAV) per share R 40,5 38,2 ▲

Gross profit margin (%) % 34,7 33,8 ▲

Net profit margin % 11,6 9,2 * ▲

Bad debt as % revenue % 0,3 0,3 ►

Overhead and related costs as % of revenue % 21,1 21,6 ▲

Cash generated by operations vs operating profit % 121,4 98,1 ▲

* 5,0% including prior year abnormal items

ICTMark Taylor

18

ICTSALIENT FEATURES

CONTINUING OPERATIONS (Rm) 2015 2014 % change

Revenue 3 431 3 439 0% ►

Operating profit 533 453 17% ▲

Profit margin 16% 13%

0

20

40

60

80

100

11 12 13 14

Inbound Outbound

ECN number of minutes per call typeTDV vs MFP and printer MIF

0

30

60

90

0

100

200

300

400

500

11 12 13 14 15

Total Clicks Multi-functional printers Printers

Mill

ions

Tho

usan

ds

Mill

ions

15

19

ICTOVERVIEW

• Good progress was made on stabilising OA business

• Initial focus was on repositioning the office automation business

• Strengthened leadership with the deployment of key team from Nashua Mobile

• Excellent performance from voice businesses

• ECN’s voice business was launched through Nashua franchises

• Driving efficiency and synergies throughout the segment

• Go-to-market distribution and service framework enhanced

20

ICTOVERVIEW

• Office automation

• Financial performance largely flat

• Overall MFP volume sales improved by 35%, total market share improved from 15% to 16%

• Focus on improving the Basic Print Services (BPS) value offering

• 23% revenue growth in SADC countries, albeit off a low base

• Prodoc improved SEK revenues by 13%, while costs reduced by 1%

• Voice business

• Excellent performance from ECN breaking through one billion voice minutes per year

• Increased volumes had a positive impact on fixed-cost base and scalable business model

• Largest independent VoIP solution provider in South Africa

• Cloud (virtual) PBX offering developed and launched

• Load-shedding contributed to estimated 2,5 million voice minutes being lost

21

ICTOVERVIEW

• Enterprise telecommunications

• Now managed separately from ECN business

• Nashua Communications’ focused efforts on Unify business contributed a R22 million

improvement in operating profit

• Asset finance business

• Quince Capital delivered another solid performance growing book by 8% to R2,1 billion

• Bad debt ratio remains less than 1% of the book

• Retained A⁺(ZA) long-term and A1(ZA) short-term national credit rating for 2016

• Focus on service automation to drive efficiencies, customer service and sales

22

ICT2016 FOCUS AREAS

• Add complementary technologies in ICT to evolve the business

to a holistic document management and managed office provider

• Offer more services through same channels while integrating back-end operations

• Office Automation and MPS/MDS opportunities being developed in new African countries

• Continue to leverage the Nashua franchise model

• Seek appropriate new products and services for delivery through the channel

• Expand the franchise model into other African territories

• Enhance collaboration with key OEMs

• Improve operational efficiencies to enhance margins

• ECN network optimisation project

• Segment logistics consolidation (Warehouse, distribution and customer service)

• Improved customer centricity

• Build on a culture of customer service through continued measurement of all engagements

APPLIED ELECTRONICSPeter van der Bijl

24

APPLIED ELECTRONICSSALIENT FEATURES

Rm 2015 2014 % change

Revenue 1 081 1 000 8% ▲

Operating profit 181 170 6% ▲

Profit margin 17% 17%

49%

51%

MARKET SECTOR REVENUE DISTRIBUTION

20%

56%

24%

2015

Commercial Defence SOEs

27%

43%

30%

2014

50%

50%

2015 2014

Exports Local

25

0%

3%

6%

9%

2011 2012 2013 2014 2015

APPLIED ELECTRONICSRESEARCH AND DEVELOPMENT

• Total R&D spend R86 million (2014: R74 million)

R&D AS A % OF REVENUE

0

20

40

60

80

2011 2012 2013 2014 2015

Funded Self-funded

R&D FUNDING (Rm)

26

APPLIED ELECTRONICSOVERVIEW

• An improved performance in H2 on back of orders received and weaker rand

• Performance from communications and radar business units slowed down

• Did not secure sufficient new projects to compensate for non-recurring projects in FY2014

• Mining surveillance radar flat year-on-year

• Despite depressed commodity cycle, demand for MSRs continued as safety and efficiencies are

critical drivers worldwide

• Increased competition resulted in pricing pressure

• Communications has secured phase 1 of SANDF new generation radio contract

• Contractual pre-payment had a positive impact on working capital requirements

• First production radios from an additional facility in Durban will be delivered early next year

• Fuze export order

• Received in H1

• Production and deliveries were at full capacity in H2

• Solutions

• Fierce local price competition led to some loss of traditional logistical support business

• Strong export orders received for Rogue stabilisation platforms due to price and performance advantage

27

APPLIED ELECTRONICSOVERVIEW

• Expanding of direct product sales into the African, Middle East and Asian markets

• Security radars in SADC and Central Africa

• Rogue, radar and fuze systems to Middle East

• Radios and radars to Asia

• Innovation

• Client-funded R&D will yield a new generation technology radar for the SA Navy

• Newly developed mining radar sensor has been successfully tested in Canada to detect

underground rock faults. Final phase of client development funding received

• First successful flight trials concluded on the new generation airborne radio (ACR510)

• Acquisition

• Vertical integration acquisition undertaken to gain control of critical IP

28

APPLIED ELECTRONICS2016 FOCUS AREAS

• Build and strengthen partnerships with OEMs and other distributors to gain

access to new export markets and long-term contracts

• Continue to develop commercial applications using in-house technologies,

thereby broadening our customer base

• Continue to drive improvement in transformation to ensure that we are aligned

with South Africa’s national goals

ELECTRICAL ENGINEERINGAlan Dickson

30

60

70

80

90

12 13 14 15

R00

0 pe

r to

nne

Total price FY13 average

FY14 average FY15 average

COPPER PRICE

0

20

40

60

80

100

Sep Mar Sep Mar Sep

13 14 15

Low voltage Energy cables

Copper telecom cables Fibre telecom cables

ELECTRICAL ENGINEERINGSALIENT FEATURES

% FACTORY CAPACITY UTILISATION

(Rm, includes portion of JV) 2015 2014 % change

Revenue 4 112 3 611 14% ▲

Operating profit 520 428 21% ▲

Profit margin 13% 12%

31

ELECTRICAL ENGINEERINGOVERVIEW

• Diversification

• Two new circuit breaker product range developments were completed

› Commercial product range launched in Australia

› Rail rolling product range launched worldwide

• Improved energy cable market leadership with the completion of high and extra-high

voltage project capability at 275kV and 400kV

• Efficiency improvements

• Manufacturing efficiencies improved, partly due to increased production volumes

• Operating cost increases were contained to below CPI levels

• Strong operating cash flows of R505 million (2014: R375 million)

• Despite adverse trading conditions, operating profit margin improved from 12% to 13%

32

ELECTRICAL ENGINEERING2016 FOCUS AREAS

• Local market conditions are expected to soften resulting in continued focus on

margin controls and efficiencies

• Geographic expansions

• Cables into Africa

• New circuit breaker ranges

• Market alignment with expectations of key long-term customers

• Investment is expected to result in market leading ratings on the amended B-BBEE codes

• Expand project-based offerings to meet the evolving requirements of our customers

GROUP STRATEGYAlan Dickson

34

STRATEGIC REVIEWMATERIAL MATTERS

• Concentration risk

• Mainly South African based revenue streams

• Mature business life-cycle products

• Slow growth rates

• Reunert’s core competitive advantages

• Well-known and respected brands

• Diverse and loyal customer base

• Number one or two in the majority of the market sectors we participate in

• Strong operational performance culture with a credible track record

• Healthy cash flows

3535

STRATEGIC PILLARS

Strategic review completed and received board approval at end April 2015

Implementation of the Reunert

group strategy will provide

• Opportunities for further growth

• A more balanced group with

additional products and services

• Diversified geographical

revenues

36

STRATEGIC EXECUTION PROGRESS

• Acquisitions are a key element of Reunert’s growth strategy

• A board approved acquisition methodology is followed

• Targets are aligned to the current three segments of Reunert

• The internal M&A capability has been strengthened

• Small acquisition in applied electronics awaiting Competition Commission approval

• Dividend growth is aligned to support the strategy execution

PROSPECTSAlan Dickson

38

PROSPECTS

• Reunert’s future growth prospects are

• Likely to have a correlation to the South African macro-economic trends

• Augmented by recently secured long-term contracts in the applied electronics segment

• Execution of Reunert strategy

• Continued focus on acquisitions that deliver enhanced shareholder value will continue

• Dividends

• Reunert’s cash flows are expected to support both the execution of the Reunert strategy and

the distribution of sustainable dividends