Reunert (RLO) investor relations material

Future growth ambition and market positioning

• Targeting a tripling of revenues to R7.5bn over 5–7 years, driven by strongholds consolidation, new market expansion, offering expansion, opportunistic upsides, and inorganic growth strategies.

• Positioned to capture a durable global defence super cycle, leveraging export-oriented capabilities and a pure electronics focus to address evolving battlefield needs and regional threats.

• Focused on high-growth regions including Europe, Middle East, Asia, and Africa, with partnerships and JVs as key levers for market entry and expansion.

• Strategic transformation includes disciplined investments, production ramp-up, and a unified operating model to support scaling and efficiency.

• Emphasis on critical infrastructure protection and integrated solutions, such as counter-drone and unmanned weapon systems, to address new demand pools.

Financial performance and capital allocation

• Achieved strong double-digit growth and profitability improvements over the last five years, with revenues and backlog both doubling.

• Maintained high capital efficiency with balanced growth and below-industry-average investment.

• Planned cumulative investment of ~R2bn over the next five years, focused on R&D, industrialisation, and channel development.

• Order pipeline valued at over R36bn, supporting a shift from short-term to long-term growth with accelerated backlog conversion.

• Inorganic strategy targets acquisitions that close capability gaps, open new markets, and deliver above-average profitability.

Strategic transformation and operational model

• Transitioning from a federated to a coordinated platform model to drive efficiency, accountability, and cross-business synergies.

• Four strategic pillars: securing growth visibility, disciplined investment, ensuring delivery readiness, and operating as one platform.

• Production ramp-up underway, with expanded facilities, agile workshops, and selective outsourcing to scale capacity.

• People strategy focuses on talent retention, upskilling (including AI), and workforce mobility to support growth.

• AI integration in both product development and internal processes enhances efficiency and technological edge.