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Allied Electronics Corporation (ATN, ATNP) Powertech Investor Day – 9 February 2007 Robert Venter, Chief Executive. Our profile. Information Technology. Telecoms. Multi-media and Power Electronics. Group structure. *. *. Venter Family: 62.7% voting control 32.2% economic control.

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  1. Allied Electronics Corporation (ATN, ATNP)Powertech Investor Day – 9 February 2007Robert Venter, Chief Executive

  2. Our profile InformationTechnology Telecoms Multi-media and Power Electronics

  3. Group structure * * Venter Family: 62.7% voting control 32.2% economic control CEO: Robert Venter Revenue: over R 15bn Market cap: R 12.4bn Employees: ± 11,000 * JSE listed 58% 59% 100% * * Based on share prices of 8 February 2007

  4. Management structure Executive Committee Office of the Chairman Dr. WP Venter (71) Chairman Altron CG Venter (43) CEO, Altech DC Radley (40) CFO, Altron RE Venter (46) CEO & Chairman of Executive Committee, Altron D Ramaphosa (49) Group Executive, Corporate Affairs N Claussen (45) CEO, Powertech PD Redshaw (64) CEO, BTG PMO Curle (60) Corporate Finance Dr. HA Serebro (66) Snr. Executive Director

  5. Products and services Altech Powertech BTG

  6. Primary market verticals

  7. Empowerment partners * anchor partners

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

  9. Altron balance sheet ratios

  10. * Subsidiary company results (for the 6 months ended 31 August 2006) Shareholding: 100% * Shareholding 57.7% * Shareholding 57.8% *JSE listed

  11. Subsidiary contribution to growth Operating profit bridge * Revenuebridge * R m Headline earnings bridge * Excludes corporate & financial services

  12. Aug06 Aug05 Aug06 Aug05 Aug06 Aug05 Contribution per subsidiary Revenue Operating profit * Headline earnings Rm Rm Rm 4% 38% 37% 48% 33% 6% 25% 22% 23% 32% 25% 26% 16% 17% 40% 42% 41% 50% 32% 45% Corporate & financial Altech BTG Powertech * Corporate and financial Aug 06 & Aug 05 = (1%)

  13. Improve existing operations Expand organically Acquire and dispose Allocate capital Strategic philosophies Increase shareholder value Global expansion in niche markets Black Economic Empowerment Strategic alliances Superior human capital Ownership of IPR Quality / Sustainability of Income Value added services Market leadership / Critical mass Annuity income

  14. 10 year track record Revenue HEPS 10yr CAGR 12% 10yr CAGR 12.6% Net asset value per share Dividends per share 10yr CAGR 12.5% 10yr CAGR 14.0%

  15. Key external growth drivers for the group Infrastructure spend Technology convergence Financial sector Global footprint

  16. 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

  17. Y-o-y % change in GDFI % of gdp Fixed investment trends

  18. Research Opportunity Identification Prefeasibility Feasibility, business case, contract concluding Build 165 0 PBMR 3500 1332 New Coal Supply 800 Oscar 1000 Hotel 112 Yankee 0 1775 600 961 1600 600 UCG Lima Komati Discard Coal November Julliet India Sierra 1520 100 4200 1600 800 Camden 6000 800 2400 Concentrating Solar 1800 1200 300 *Pap Foxtrot Romeo ArnotP18 2000 Mike Delta Tango Uniform Victor 4200 X-ray 0 1128 1050 1000 Bravo Hydro Nuclear Gas Coal Solar Transmission 500 Grootvlei Songo ApolloHVDC LinkCapacityUpgrade 500 Quebec Echo 4200 2100 Zulu 1050 Rainbow Millennium 2100 Golf Alpha 0 1300 OCGT Charlie 500 0 765kV CapeStrengthening Kilo Whiskey Trans KalahariInterconnector * Possible 2 400 MW Mid Merit 17 375 MW 7 800 MW 20 850 MW 8 391 MW Eskom capacity project funnel Source: Eskom

  19. Thank you

  20. Powertech Investor Relations Day9 February 2007Norbert Claussen, CEO Powertech

  21. Powertech Operational Structure Norbert Claussen SA Pierre Nothard Hans Meiring Leon Viljoen Kevin Burger

  22. Powertech

  23. Prop. Consolidation Prop. Consolidation Revenue and operating income R m 4,467 Revenue 3,737 3,790 3,740 3,332 1,919 2,031 1,764 1,888 2,305 3,046 R m Operating income 280 248 226 216 207 88 100 100 104 139 271

  24. Segmental revenue (excludes intergroup) R260m R375m R262m* R222m R361m R188m* R2 149m R1 535m 32% 20% Total: Aug 06 Aug 05 * Proportionally consolidated

  25. Segmental results by market sector Revenue 5% 31% 7% 29% 13% 18% 46% 51% Fully consolidated

  26. Powertech Capex and Capacity Utilisation * * Plant modernisation Further increase in capacity of 25-30%

  27. Metals management • Philosophy • Protect the Rand margin • Contractual escalation clauses CPA’s- Copper- Aluminium- Lead- Core steel • Cover materials on fixed price orders • Manage the average cost vs market price gap on upward and downward trends • Metals procurement based on • LME and exchange rate = RCP on copper • LME aluminium • LME lead • Core steel (international pricing) • ROE R/$

  28. Change in commodity prices Aluminium price movement Copper price movement

  29. Overseas principals • ABBTransformer technology • DrakaOptical fibre • EatonBatteries • EnersysRectifiers • OmronIndustrial automation • TridonicLighting control gear • Von Roll IsolaHigh temperature insulation material • WeidmanTransformer insulation material

  30. Fixed capital formation growth and forecast Lag of 2-3 years on GDFI dependent on mix

  31. Opportunities: Eskom and municipalities • Capacity constraints leading to interruptions in power supply • Demand starts exceeding supply: capacity of 36,000 MW vs >34,000 MW demand • Resulting blackout, eg. Cape Town • Ageing power infrastructure • Eskom and municipalities need to upgrade urgently, installed infrastructure past its sell-by date. • Eskom spend increased from R 84bn by R13bn to R 97bn over next5years, including • > R11.5bn for new generation • > R 12bn for Transmission • > R 14bn for distribution • Restructuring of electricity distribution industry into REDs will open up opportunities for Powertech • Electrification • Power for all by 2012 - housing electrification needs no less than R2.5bn/a for electrification.

  32. Opportunities: Building and Construction Industry • Strong demand for property continues (building plans passed, info to follow) • Government and major banks committed R42bn to provide low cost housing • Development of shopping complexes, golf estates, etc. across the country • Soccer World Cup 2010 • Major upgrades in infrastructure, ie. Stadia, accommodation, roads, etc. Building intentions vs rate of completionsPrivate residential buildings Building intentions vs rate of completionsPrivate non- residential buildings

  33. Telecommunications • Telkom announced another R 25.1bn capex over the next 4 years in order to increase the capacity of its network • Neotel (SNO) has commenced its rollout • African cellular expansion • Nigeria • East Africa

  34. Fixed vs mobile subscriber growth in Africa Thousands of subscribers Source: BMI-T, 2005

  35. Opportunities: Transport Industry • Transnet increased its 5year capex plan to R 64.5bn (increase by R27.5bn), including • Rail infrastructure R11.2bn • Ports R18.6bn • Rail operations R20.3bn • Metrorail upgrades announced • Gautrain planning progressing, estimated spend of R26bn

  36. Threats • Low cost imports: China, India, Brazil • Skills attrition and availability – technical skills is a global problem • Availability of raw materials such as copper, aluminium, core steel, etc. • HIV/Aids impact on population and skills • Delays in project implementation re infrastructure spend • Impact of interest rate hike on Building and Construction Industry

  37. Vehicle parc

  38. Summary of prospects • Powertech will benefit from the infrastructure growth in SA • Eskom spend on generation, transmission and distribution • Municipal power infrastructure upgrades and expansion • Building and Construction Developments - 2010 • African Cellular Communications Growth • Drive VCO project to achieve savings in logistics costs across the group • Ongoing development and sourcing of skills to support Powertech‘s expansion • Continue search for synergistic and profitable acquisition targets including profitable services businesses

  39. Aberdare CablesPowertech Investors Relations Day – 9 February 07Hans Meiring, CEO

  40. Aberdare History • Founded in Port Elizabeth - 1946 • Sold to NKF - 1956 • Phillips incorporation - 1968 • Aycliffe Cables acquisition - 1969 • Copper telecommunication - 1974 • Optical fibre plant - 1981 • Contronics Cables acquisition - 1982 • ASEA/Scottish Cables merger - 1985 • Alcobre acquisition - 1994 • Delta Cables acquisition - 1995 • SA PVC acquisition (Voltex) - 1998 • Lambda Cables acquisition - 1998 • Aberdare Intelec founded - 1999 • Cables de Comunicaciones - 2000 • Aberdare Network Services established - 2001 • Corning equity deal - 2001 • Izingwe equity deal - 2004 • Technology Integrated Solutions est. - 2006 • Greenhills Distribution Centre est. - 2006 • 60TH Anniversary - 2006 • ATC/Aberdare Joint Venture - 2007

  41. Aberdare facts and figures • Major shareholders : Powertech & Izingwe • Locations : RSA, Mozambique, Portugal & Spain • Core Business : Cable & Solutions • Sales Revenues : R 4 000 m / US $ 570 m • Employees : 2600 • Structure : Sales-led Functional Organization • Manufacturing Facilities : Pietermaritzburg, Gauteng, Pretoria, Port Elizabeth, Maputo, Oporto, Zaragoza • Asset Base : R 1225 m US $ 175 m • Sales & Distribution : Port Elizabeth, Cape Town, Middelburg, Welkom, Johannesburg, Nelspruit, East London, Bloemfontein, Durban, Upington, Maputo, Oporto, Lisbon, Madrid, Zaragoza, Hong Kong, Australia, Ghana, Namibia • Technology Partners : Tyco/Raychem: Cable USA, Draka Cables

  42. Aberdare Operating Structure

  43. Utilities ESKOM Transmission Distribution Generation Mining Houses Railways & Harbours General industry Building & Construction Exports Telkom SA Second Network Operator Railways Mining Houses Private telecom networks General industry IT & Surveillance installation markets GSM Networks Exports Market Segments Power Telecom & Data

  44. LV, MV & HV XLPE cable MV PILC cable Elastomeric cable PVC cable O/H conductors Aerial bundle cable Fire Cables Copper rod Conform profiles Cable accessories Copper telecom cable OF telecom cable Industrial telecom cable Instrumentation cable Railway Signaling cable Data cable Fire cables Pigtails & Patch cords Cable accessories Products Power Telecom & Data

  45. Aberdare Export Markets • Swaziland, Lesotho, Botswana, Namibia, Zimbabwe, Kenya, Malawi, Ghana, Nigeria, DR Congo, Cameroon, Gabon, Guinea, Mali, Tanzania, Sudan, Zanzibar, Mauritius, Seychelles, Mozambique, Zanzibar, Madagascar • Australia, China, Hong Kong, Macau, Singapore, Brunei, Sri Lanka, Philippines • UAE, Kuwait, Qatar, Oman, Yemen, Bahrain • United Kingdom, Ireland, Scotland • Portugal, France, Belgium, Spain, Romania, Sweden • Brazil, Chile, Paraguay, Uruguay, Peru • USA, Canada

  46. Market Shares – SA Power Cable Market Other Mtec Aberdare African

  47. Aberdare Strategic Plan 2007 - 2010

  48. Aberdare Group Strategic Intent DriversSustainable Value Creation and Growth through: • Customer Relationship Management • Broad Based BEE • Technology Innovation • Talent Management • Operational & Functional Excellence • Global Growth • Value Chain Optimisation

  49. Aberdare 2010 and beyond strategic plan concept summary … “........FROM GOOD TO GREAT towards 2010 and beyond......”

  50. Consolidation / Rationalization Telecoms Operations • Aberdare/ATC Joint Venture completed January 2007 • Created World Class Company with the best machinery and processes • Ability to explore manufacturing opportunities in Africa with spare plant from the Joint Venture • Secured Technology Partners for new Joint Venture in Europe

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