Earnings release
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ALTRON LIMITED (Registration number 1947/024583/06) (Incorporated in the Republic of South Africa) Share Code: AEL ISIN: ZAE000191342 (“Altron” or “Group” or “Company”) VOLUNTARY OPERATIONAL UPDATE AND APPOINTMENT OF GROUP COMPANY SECRETARY The Company hereby provides a voluntary operational update for the six months ending 31 August 2026 ("HY27"). The commentary below is based on trading and operational performance for the five months ended 31 July 2026 compared to the five months ended 31 July 2025. Commentary relates to continuing operations1. Overview and operating environment: Trading and operational performance to 31 July 2026 has been broadly in line with management expectations. The Group expects trading for HY27 to follow a similar trend. Operational momentum evidenced in the prior year continued into HY27. Our Platforms segment 2, Altron’s growth engine, delivered high-single -digit revenue growth. IT Services delivered modest revenue growth, a notable improvement on the prior comparative period when revenue declined , resulting in overall growth in revenue from continuing operations in the low-single digits. This result marks a meaningful inflection point in the Group's growth trajectory and the strategic portfolio transformation undertaken over the past three years : Altron's evolution into a multi- platform business positioned for sustainable growth in South Africa's digital economy and the successful repositioning of the IT Services segment. 1 Commentary relates to continuing operations unless specified otherwise. Continuing operations include: Altron FinTech, Netstar, Altron HealthTech, Altron Security, Altron Digital Business, Altron Document Solutions, and Altron Arrow. The six months ended 31 August 2025 ("HY26") includes the impact of Nexus for 5 months , in discontinued operations. Nexus was disposed of effective 1 August 2025 (HY26) and thus has no impact in HY27. 2 For purposes of this operational update, Altron Security remains fully included within the IT Services segment, consistent with previously reported segmental disclosure. As communicated at the FY26 results presentation and the Capital Markets Day held in J une 2026, the Group will separately disclose the Platform and IT Services components of Altron Security when reporting its HY27 results, wi th HY26 comparative information presented on a consistent basis to facilitate period-on-period comparability.
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The Group's focus and discipline in deploying capital into higher -margin, annuity-based growth opportunities continued in HY27, with the contribution from the Platforms segment increasing further to approximately 45% of Group revenue, while accounting for approximately 95% of operating profit. This mix is expected to be sustained through the twelve months ending 28 February 2027 (“FY27”), reflecting the ongoing shift towards a higher-quality earnings profile. In FY27 we expect a similar pattern to twelve months ending 28 February 2026 (“FY26”), being a stronger performance in the second half of FY27. Group EBITDA and operating profit increased by low-to-mid-teen percentages, underpinned by continued operational discipline and operating leverage, enabling the conversion of revenue growth into stronger earnings growth. Importantly, this profit growth has been achieved while simultaneously absorbing deliberate growth investments in Netstar (including platform modernisation and customer acquisition initiatives) and Altron FinTech's expansion in the SME market. Operating margins across the Group remain resilient, supported by the structural shift toward annuity-revenue businesses and disciplined cost management. The Group's operating profit margin 3 has expanded on a year - to-date basis, reflecting both the operating leverage inherent in our Platforms portfolio as scale increases and improved profitability within the IT Services segment. Capital structure and cash generation The Group continues to deploy capital strategically towards higher -margin, annuity -based growth opportunities, including ongoing investments in Netstar's platform modernisation and the expansion of Altron FinTech. These investments support the Group's Transformative Growth strategy and long-term value creation objectives. Altron remains committed to maintaining a healthy liquidity position, underpinned by strong cash conversion and disciplined capital allocation . The structural shift towards annuity -based revenue, 68 % of total Group revenue, continues to enhance the quality of earnings and support higher levels of cash flow generation. As a result, the Group maintained a positive net cash position and ungeared balance sheet after dividend payments of approximately R750 million in June 2026, including a special dividend. 3 The reported year-on-year operating profit margin performance is comparable, as the five-year useful life applied to Netstar device depreciation was in effect throughout both HY26 and HY27.
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Segmental Performance Platforms segment4 • Altron FinTech has maintained the strong momentum established in FY26, with revenue and EBITDA growing mid-to-high teens . Performance was underpinned by continued customer acquisition, healthy transaction volume growth, lower -than-expected customer churn and ongoing expansion of its payments and collections ecosystem. Strong traction in the POS rental offering continues to support platform scale and the growth of recurring revenue streams. Annuity revenue exceeded 85% of total revenue, supporting a high- quality earnings profile and demonstrating the platform's scalability. • Netstar's EBITDA increased in the mid -teens, in line with expectations, supported primarily by the continued strong performance of the South African business. o Having successfully scaled its subscriber base to more than two million over the past three years, FY27 is a year of targeted investment focused on sales execution, platform modernisation, customer acquisition and strengthening long -term competitiveness, while maintaining disciplined capital allocation and operational efficiency. o Under Warren Mande's leadership, Netstar is building on its strong market position through enhanced sales execution and disciplined, data-driven capital allocation towards the highest- return commercial opportunities and sales channels, supporting sustainable long-term value creation. • Altron HealthTech continues to deliver solid profitability and cash generation, with mid-teen EBITDA growth. While revenue growth is improving, management remains focused on accelerating momentum through enhanced commercial execution, particularly in the corporate market and data monetisation initiatives. IT Services segment • Altron Digital Business has made a strong improvement in performance following the successful execution of its profit improvement strategy undertaken in the prior year. The momentum achieved in the second half of FY26 continued into the current period, with the business delivering an operating profit and positive EBITDA, compared to an operating loss and negative EBITDA a year ago. Performance was supported by improved order intake, contract renewals and focused cost management. The business is well positioned to benefit from any upturn in IT services spending. 4 For purposes of this operational update, Altron Security remains fully included within the IT Services segment, consistent with previously reported segmental disclosure. As communicated at the FY26 results presentation and the Capital Markets Day held in J une 2026, the Group will separately disclose the Platform and IT Services components of Altron Security when reporting its HY27 results, wi th HY26 comparative information presented on a consistent basis to facilitate period-on-period comparability.
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• Altron Security’s EBITDA and operating profit were impacted by software revenue recognition timing and IT Services segment pressures. The platform portion of the business (identity and digital signing) performed well, while IT services remain under pressure due to the constrained enterprise spending environment. The Group continues to pursue corrective actions to improve profitability in the IT Services component. • Altron Document Solutions continued its strong trajectory, with EBITDA growth in the low -twenties, reflecting higher -margin service mix and disciplined cost management. The business continues to deliver consistent profitability and cash generation. Distribution • Our distribution business, Arrow, while a relatively small contributor to the Group, has had a strong start to the year and entered FY27 with positive momentum. Having moved through the bottom of the cycle, the order book is growing, and the business has recorded a positive book-to-bill ratio for the first time in two years, supporting an encouraging outlook. Strategic highlights Following a comprehensive reassessment of B-BBEE ownership usage methodology, the Group has been re- rated with a Black Owned status of 63% (previously 38%) and Black Women Owned status of 35% (previously 21%). The enhanced ownership credentials flow through to the Group’s relevant South African operating entities, taking them above key ownership thresholds and strengthening their competitiveness in government and enterprise procurement. The improved ownership profile also provides greater flexibility in achieving targeted B-BBEE outcomes, enabling transformation investment to be increasingly directed towards initiatives that deliver meaningful and sustainable impact. Appointment of Group Company Secretary In terms of the JSE Listings Requirements, shareholders are advised that Ms Lauren Wilson is appointed as Group Company Secretary with effect from 31 August 2026. Ms Wilson is the Company’s Chief Legal Officer, a position she has held since March 2025. Ms Wilson brings almost two decades of legal expertise and strategic leadership to the position. Additional information is available at www.altron.com/leadership. The Board is satisfied that Ms Wilson has the requisite competence, qualifications and experience to fulfill the role in accordance with the JSE Listings Requirements. Pre-close investor call Altron will host a virtual pre-close investor call for the six months ending 31 August 2026, ahead of the commencement of the closed period. The pre-close investor call will take place today, Monday 31 August
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2026, at 3:00pm SA time (SAST). Shareholders and analysts are invited to register via the following link: https://www.corpcam.com/Altron31082026 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 31 August 2026 JSE Equity Sponsor: Investec Bank Limited Investor Relations contact: Phillipe Welthagen +27 84 512 5393 Phillipe.welthagen@altron.com