Allied Electronics Corporation (ATN, ATNP)Powertech Investor Day – 9 February 2007

Robert Venter, Chief Executive

Our profile

TelecomsInformationTechnology Multi-media and

Power Electronics

Group structure

****

Telecoms, Multi-media, InformationTechnology (TMT)

Information Technology Power Electronics

Market Cap: R 6.7bn Employees: 3344CEO: Craig Venter

Market Cap: R 2.3bn Employees: 2720

CEO: David Redshaw

Market Cap: N/AEmployees: 4974

CEO: Norbert Claussen

JSE listed **

**

CEO: Robert Venter

Revenue: over R 15bn

Market cap: R 12.4bn

Employees: ± 11,000

Venter Family: 62.7% voting control

32.2% economic control

Based on share prices of 8 February 2007

58% 59% 100%

**

Management structure

RE Venter (46)CEO & Chairman of Executive Committee,Altron

DC Radley (40)CFO, Altron

CG Venter (43)CEO, Altech

N Claussen (45)CEO, Powertech

PD Redshaw (64)CEO, BTG

PMO Curle (60)Corporate Finance

Dr. WP Venter (71)ChairmanAltron

Dr. HA Serebro (66)Snr. Executive Director

Office of the Chairman Executive Committee

D Ramaphosa (49)Group Executive, Corporate Affairs

Products and services

TELECOMMUNICATIONS

Cellular telephony, vehicle tracking and recovery systems.

Design, installation and commissioning of MOTOROLA two-way radio equipment and systems.

MULTIMEDIA & ELECTRONICS

VAR’s of electronic components and products.

Design and manufacture of digital satellite decoders and software applications.

INFORMATION TECHNOLOGY

EFTPOS terminals, telecom software solutions, GSM pre-paid vouchers and smart-card technology systems.

INFORMATION TECHNOLOGY

Microsoft licensing & systems integrator.

Independent IT consulting services and solutions.

Network solutions & maintenance.

ERP implementation.

Exclusive distributor of NCR products (ATMs), services and implementation of EFT applications and scanners.

Desktop services and support. Remote monitoring of IT facilities.

Exclusive partner of XEROX office products and supplier of document management services.

Exclusive partner in Sub Sahara Africa of ALCATEL for voice and data products.

Electronic switching & transactions processing for the medical industry.

POWER ELECTRONICS

Medium- and low-voltage power cables.

Power and distribution transformers.

Automotive, traction batteries and DC power systems.

Electrical accessories and insulation materials

Lighting control gear.

Copper, Optical Fibre and Data cable.

Standby power and rectifier systems.

Solar systems.

Altech PowertechBTG

Primary market verticals

Consumer

Telecoms

Financial institutions

Building and construction

Power infrastructure

Mining

Telecoms

Transport

Financial institutions

Corporates

Education

Retail

Empowerment partners

Altech BTG Powertech

Pamodzi *

• 28% AltechNamITech

• 25.01% Altech Data

• Key principal: Ndaba Ntsele, Solly Sithole

Kagiso Ventures *

• 27% BTG SA

• Key principals: Roger Jardine, Afzal Patel

Izingwe Capital *• 30% Aberdare Cables (in consortium with

Matomo)• Key principal: Sipho Pityana

Kagiso• 25.1% Battech• Key principals: Roger Jardine• Afzal Patel

Wiphold• 20% ABB SA - 10% ABB Powertech Transformers• Key principal: Louisa Mojela

Power Matla• 25.05% Desta Power Matla• Key principal: Solly Moloko

Mahogany Capital• 25.1% Calidus Whiteleys• Key principal: Taurai Muranda

* anchor partners

Financial summary(for the 6 months ended 31 August 2006)

R millions Aug 06 Aug 05 % change

Revenue 8 339 6 954 20

EBITDA 828 602 38

Operating profit 711 502 42

Operating margin (%) 8.5 7.2

HEPS (cents) 124 81 52

Diluted HEPS (cents) 109 76 43

RONA 35.9% 24.0%

Cash on hand 1 516 875

Altron balance sheet ratios

  Aug-06 Aug-05

Return on capital employed (operating income: debt and equity)

31.4% 23.5%

Return on equity (attributable income: equity) 23.5% 16.8%

Return on operating assets 22.4% 18.0%

Return on net assets 35.9% 24.0%

Subsidiary company results (for the 6 months ended 31 August 2006)

* JSE listed

Revenue: R3.0bn 32% Heps: 64c 140%

Op profit: R272m 114% Cash: R338m

Op margin 5.5% 8.9% ROCE: 16.2% 30.4%

Revenue: R3.3bn 13% Heps: 197c 9%

Op profit: R289m 16% Cash: R1,272m

Op margin 8.5% 8.7% ROCE: 29.4% 32.3%

Revenue: R2.0bn 15% Heps: 58c 25%

Op profit: R157m 23% Cash: R(83)m

Op margin 7.5% 8.0% ROCE: 44.1% 38.9%

Shareholding 57.7%

Shareholding 57.8%

Shareholding: 100%

*

*

*

Subsidiary contribution to growth

6,950

8,330388

251

741

6,000

6,500

7,000

7,500

8,000

8,500

Aug-05 Altech BTG Powertech Aug-06

R m

505

39

718

29

145

200

300

400

500

600

700

Aug-05 Altech BTG Powertech Aug-06

R mRevenue bridge * Operating profit bridge *

Headline earnings bridge

* Excludes corporate & financial services

227

98

3509

16

150

200

250

300

350

400

Aug-05 Altech BTG Powertech Aug-06

R m

0

50

100

150

200

250

300

350

400

Contribution per subsidiary

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Aug 06 Aug 05

0

100

200

300

400

500

600

700

800

Aug 06 Aug 05

Revenue Operating profit * Headline earnings

Altech BTG Powertech

Aug 06 Aug 05 Aug 06 Aug 05 Aug 06 Aug 05

40%

23%

37%

42%

25%

33%

41%

22%

38%

50%

26%

25%

32%

16%

48%

45%

17%

32%

Corporate & financial

4%

6%

Rm Rm Rm

* Corporate and financial Aug 06 & Aug 05 = (1%)

Strategic philosophies

Improve existing operationsExpand organically

Acquire and disposeAllocate capital

Strategic alliances

Ownership of IPR

Annuity income

Value added services

Market leadership / Critical mass

Quality / Sustainability of Income

Superior human capital

Global expansion in niche markets

Black Economic Empowerment

Increase shareholder value

10 year track record

0

4000

8000

12000

16000

1997 1998 1999 2000 2001 2002 2003 2004 2005 20060

50

100

150

200

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

0

200

400

600

800

1000

1200

1997 1998 1999 2000 2001 2002 2003 2004 2005 20060

20

40

60

80

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

10yr CAGR12%

Revenue

Net asset value per share

HEPS

Dividends per share

10yr CAGR12.5%

10yr CAGR12.6%

10yr CAGR14.0%

Key external growth drivers for the group

Infrastructure spend

Technology convergence

Financial sector

Global footprint

Infrastructure spend

Eskom expenditure and expansion continues

Gautrain commenced - cross group opportunities with first orders received

Building and construction industry activity remains buoyant but shift from residential to commercial

Local municipalities upgrading infrastructure for compliance

Soccer world cup projects commencing (upgrading of stadiums, activity in hospitality industry, infrastructure etc.)

Strength of resources allowing greater expenditure by mining industry

Global trend in infrastructure development

Conclusion of JV with Reunert allows exposure to telecoms infrastructure

Fixed investment trends

-30

-20

-10

0

10

20

30

65 68 71 74 77 80 83 86 89 92 95 98 01 04

0

5

10

15

20

25

30

35

Y-o-y % change As % of gdp

Y-o-y % change in GDFI % of gdp

Eskom capacity project funnel

Research

Prefeasibility

Opportunity Identification

Feasibility, business case, contract

concludingBuild

17 375 MW 7 800 MW 20 850 MW 8 391 MW

165

100

112

0

0

1800

3500

500

1200

500

42002400

4200

4200

1000

1520

2100

961

300

1128

2100

1000600 600

1332

1300

1775

6000

800

800

1600

1600

1050

800

1050

0

0

5000

2000

PBMR

UCG

Concentrating Solar

New Coal Supply

Discard Coal

Oscar

Uniform Victor

Rainbow Millennium Zulu

Trans KalahariInterconnector

November

Yankee

Mike Tango

Whiskey

Foxtrot

Sierra

X-ray

Songo ApolloHVDC LinkCapacityUpgrade

LimaIndia

*Pap

Julliet

RomeoDelta

Bravo

Quebec Echo

Golf

765kV CapeStrengthening

Charlie

Kilo

Hotel

Komati

Camden

ArnotP18

Grootvlei

AlphaOCGT

* Possible 2 400 MW Mid Merit

Hydro

Nuclear

Gas

Coal

Solar

Transmission

Source: Eskom

Thank you