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Investment case

Delivering financial growth underpinned by a strong balance sheet, financial discipline through considered capital allocation, and pursuing organic and acquisitive growth

Investment highlight
1

High quality assets in diversified sectors

2

Strategy growth initiatives geared for accelerated earning

3

Strong cash generation and a healthy balance sheet

4

Responsible business practices underlines investment case

Drivers
  • Focused investment pillars:
    • Electrical Engineering
    • ICT; and
    • Applied Electronics with a key focus on
      • Renewable Energy opportunities
  • Accelerated growth driven by strategy execution into:
    • Expansion of the ICT Segment;
    • Renewable Energy; and
    • Internationalisation in Electrical Engineering and Applied Electronics Segments
  • Typical EBITDA/FCF conversion > 65%
  • Strong dividend payer
    • DY = 5,5% (2023)
  • 2023 Total shareholder return – 47%
  • Values driven leadership and ethos
  • Ethical culture and practices
  • Talent Management
  • Strong ESG credentials
Deliverables
  • Strong, defendable market positions
  • Good market fundamentals support continued growth of the core businesses
  • Low capital investment requirements for core businesses
  • Demonstrable track record of consistent earnings growth
  • Strong balance sheet supports capital allocation into:
    • Digital integration solutions in the ICT Segment;
    • Expanded renewable energy offering and ownership of renewable solar energy assets
    • Increasing international revenues
  • Dividend payments are a core element of Reunert’s investment case
  • Continued reinforcement of the Group Values and Code of Ethics
  • Retention and development of critical skills
  • Revised Sustainability Strategy Framework incorporated into the Group Strategy
  • Management KPIs linked to attainable ESG mid‑to long-term goals