ALTRON LIMITED - Voluntary Operational Update

Voluntary Operational Update

ALTRON LIMITED
Registration number 1947/024583/06
(Incorporated in the Republic of South Africa)
Share code: AEL
ISIN: ZAE000191342
("Altron" or "Group" or "the Company")

VOLUNTARY OPERATIONAL UPDATE

Altron hereby provides a voluntary operational update for the six months ending 31 August 2025.

Overview

The Group delivered a resilient performance, with continued growth in the Platforms segment offsetting
challenges in IT Services. The overall operating environment for information technology ("IT") services
has been appreciably more challenging than in the prior year, both globally and in South Africa, with
constrained IT budgets and restricted consumer spending. Results for the period reflect the benefit of
a strong and diversified portfolio, which has mitigated the impact of difficult market conditions in IT
Services.

At the Group level, revenue is expected to be marginally softer, with continuing operations flat for the
period. Group earnings before interest, taxes, depreciation, and amortisation ("EBITDA") is expected to
be at a similar level to the first half of the 2025 financial year, with Group operating profit reflecting
single-digit growth for the period.

Continuing Operations

-   The Platforms segment continued its momentum into the first half of the 2026 financial year with
    double-digit revenue growth expected for the period, underpinned by robust annuity revenue
    streams. This is anticipated to translate into strong growth in EBITDA and operating profit. Altron
    Fintech was a key contributor to this performance, delivering strong double-digit growth across
    revenue, EBITDA and operating profit. Its collections and payments platform continues to drive this
    growth, benefiting from increased SME customer acquisition and rising transaction volumes.
    Netstar's revised accounting policy, extending the depreciation period for applicable capital rental
    devices from three years to an average of five years, became effective 1 March 2025, better aligning
    the depreciation profile with the economic life of these assets and with industry standards.

-   The IT Services segment continues to face headwinds as a result of reduced client expenditure and
    a challenging operating environment, resulting in revenue and gross margin pressure. Altron Digital
    Business has been significantly affected by these challenges and is projected to report an operating
    loss for the interim period, with a profit improvement strategy being implemented to address these
    persistent industry challenges. Altron Security and Altron Document Solutions benefited from the
    corrective action and profit improvement strategy implemented in the previous years, with both
    businesses delivering healthy growth during the period.

-   As previously guided the Distribution segment continues to navigate the cyclical global slowdown
    in electrical component distribution, resulting in lower revenue and operating profit for the period.

Discontinued Operations

As communicated at our Annual General Meeting on 31 July 2025, we concluded the sale of Altron
Nexus, which became effective 1 August 2025. This delivers on our commitment to exit our discontinued
operations, bringing clarity to our structure and enabling greater focus on our core businesses.
Conclusion

The Group's interim financial results for six months ending 31 August 2025 are expected to be released
on SENS on Monday, 3 November 2025.

Shareholders are advised that the information set out above, and the financial information on which this
operational update is based, have not been audited, reviewed or otherwise reported on by the
Company's external auditors.

Johannesburg
28 August 2025

JSE Equity Sponsor
Investec Bank Limited

Date: 28-08-2025 07:05:00
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