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
DRIVERS
DELIVERABLES
INVESTMENT HIGHLIGHT
1.High quality assets in diversified sectors
DRIVERS
  • Focused investment pillars:
    • Electrical Engineering;
    • ICT; and
    • Applied Electronics with a key focus on
      • Renewable Energy opportunities
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
INVESTMENT HIGHLIGHT
2.Strategy growth initiatives geared for accelerated earnings
DRIVERS
  • Accelerated growth driven by strategy execution into:
    • Expansion of the ICT Segment;
    • Renewable Energy; and
    • Internationalisation in Electrical Engineering and Applied Electronics Segments
DELIVERABLES
  • Strong balance sheet supports capital allocation into:
    • Digital integration solutions in the ICT Segment
    • Expanded renewable energy offering and ownership of renewable solar assets
    • Increasing international revenues
INVESTMENT HIGHLIGHT
3.Strong cash generation and a healthy balance sheet
DRIVERS
  • Typical EBITDA/FCF conversion
    > 65%
  • Strong dividend payer
    • DY = 5,5% (2023)
  • 2023 Total shareholder return
    = 47%
DELIVERABLES
  • Dividend payments are a core element of Reunert’s investment case
INVESTMENT HIGHLIGHT
4.Responsible business practices underlines the investment case
DRIVERS
  • Values driven leadership and ethos
  • Ethical culture and practices
  • Talent management
  • Strong ESG credentials
DELIVERABLES
  • 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 medium- to long-term goals