PROVISIONAL CONDENSED REVIEWED CONSOLIDATED FINANCIAL STATEMENTS and cash dividend declaration for the year ended 30 September 2020



Reunert’s 2020 financial performance, as set out in the provisional condensed reviewed consolidated financial statements, has been negatively impacted by three distinct issues:

These three issues were the drivers of the Group’s lower financial performance when compared to the prior year.

Importantly, the operational and financial performance of the Group, subsequent to re-commencing operations under COVID-19 regulations after the national lockdown levels 5 and 4, have been more positive than originally anticipated. In the fourth quarter of the 2020 financial year, the Group achieved 90% of the core operating profit1 earned in the comparative quarter of the 2019 financial year. Free cash flow (FCF)2 generation, measured as a percentage of earnings before interest, tax, depreciation and amortisation (EBITDA), has also returned to pre-COVID-19 levels. Whilst recognising that there remains much economic uncertainty ahead, management is of the view that the fourth quarter performance represents the strength of Reunert’s underlying businesses in the economic conditions our key markets are likely to face.

1 Core operating profit = operating profit as reported, adjusted for the impact of items such as profit and loss on disposal of assets, credit write-offs and ECL’s recognised. See table below.
2 Free cash flow = Cash generated from operations less (cash interest paid plus cash tax paid) plus cash interest and dividends received less replacement property, plant and equipment and intangible assets.

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Incorporated in the Republic of South Africa
Reg. No 1913/004355/06
Ordinary share Code: RLO
ISIN code: ZAE000057428
'("Reunert", "the Group" or "the Company")