Aeci Ltd · JSE:AFE
Aeci — Investor Presentation (June 2022)
52 slides from Aeci's investor presentation, Jun 22, 2022
Slide 1: Investor Presentation and Site Visit
INVESTOR PRESENTATION AND SITE VISIT 22 June 2022
Slide 2: Disclaimer
Disclaimer This document has been prepared and issued by and is the sole responsibility of the management of AECI Ltd (the Company) and its subsidiaries (the Group). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purcha
Slide 3: Agenda
Agenda Ww Investment highlights Financial performance Pillar overview Strategic outlook Lunch Site visit
Slide 4: Welcome to AECI's investor presentation and site visit
Welcome to AECI’s investor presentation and site visit Presenters ¢ £ y MARK DYTOR AARTI TAKOORDEEN Chief Executive Chief Financial Officer a: a vy v. MARK KATHAN DEAN MULQUEENY DEAN MURRAY AECI Mining Executive AECI Water Executive AECI Agri Health and Chemicals Executive OA=ECI
Slide 5: One AECI, for a better world
One AECI, for a better world 4 =< Sey
Slide 6: Operating environment
Operating environment _ Commodity price increases Inflationary pressure Geo-political conflicts Global supply-chain disruption Cost of extreme weather events South African economic slowdown ESG as a way of doing business JA=CI
Slide 7: AECI Much Asphalt and AECI Schirm
AECI Much Asphalt and AECI Schirm ‘ OA=CI’ OA=CIr —~z——EEE —yeeeee MUCH ASPHALT SCHIRM * Business impacted by deferred infrastructure ¢ AECI Schirm (USA) continues to deliver excellent upgrade and new investments in South Africa results and is investing US$31m during FY2022 to . . increase capacit'
Slide 8: Investment highlights
Slide 9: We create value through the 4 pillars of our business model
Investment highlights Financial performan Pillar overview Strat We create value through the 4 pillars of our business model a Deliver sustainable solutions for a better world through innovation and excellence founded on “good chemistry” 4 pillars OA=Cr — CAECr PROPERTY SERVICES | | | OA=Cr OA=ECr OA
Slide 10: Our growth strategy is premised on material opportunities
Investment highlights Financial performan Pillar overview Strategic outlook Si Our growth strategy is premised on material opportunities that 9 strengthen AECI’s investment proposition Perfect 1AECI + Strategic + Strategic —_ 1 O platforms themes = f- ‘\ 7 . . vers Excellence Financial Passionate, Z
Slide 11: Investment highlights
Investment highlights Financial performance _ Pillar overview nvestment highlights Strategic outlook _Site visit 10 me © Industry-leading, resilient and high-return mining business with robust international growth potential Portfolio of chemical solutions businesses that are market leaders in Sub-Sa
Slide 12: 1: Industry-leading, resilient and high-return mining business
Investment highlights Financial performance _—Pillar overview Strategic outlook _ Site visit 1: Industry-leading, resilient and high-return mining business with robust | » international growth potential (%) R9,7bn R12,0bn 38 50 2017 2021 Average operating profit margin: 11,0% Average ROIC: 16,5% Dom
Slide 13: 2: Portfolio of chemical solutions businesses that are market leaders
Investment highlights Financial performane Pillar overview Strategic outlook Si 2: Portfolio of chemical solutions businesses that are market leaders in 2 Sub-Saharan Africa What positions us to win Leading player in Sub-Saharan Africa and South Africa in industrial and public water service and supp
Slide 14: 3: Innovative, customer-centric solutions
Investment highlights Financial performance Pillar overview Strategic outlook _ Site visit 3: Innovative, customer-centric solutions driven by our distinctive i technical and commercial talent translates to performance and growth Group opportunity map across pillars Emulsion vertical drop system Mob
Slide 15: 4: ESG leadership and commitment to Zero Harm
Investment highlights Financial performance Pillar overview Strategic outlook —_ Site visit 4: ESG leadership and commitment to Zero Harm beyond compliance 7 Environmental )) Our carbon commitments incidents AECI commits to Net Zero Emissions by 2050! 2025 Target 2021 Actual Scope 1: 20% Scope 1: 34
Slide 16: 4: ESG leadership and commitment to Zero Harm
Investment highlights Financial performan Pil Strategic outlool Site vis 4: ESG leadership and commitment to Zero Harm beyond compliance 5 O Fatalities for 3 years @ 100% Reduction in life-altering injuries 2022 2021 YTD Fatalities 0) 0) Life-altering injuries 0 0 Major/serious environmental inciden
Slide 17: 4: ESG leadership and commitment to Zero Harm
Investment highlights Financial performane Pillar overview Strategic outlook _ Site visit 4: ESG leadership and commitment to Zero Harm beyond compliance 6 AFSC
Slide 18: 4: ESG leadership and commitment to Zero Harm
Investment highlights Financial performance _—Pillar overview Strategic outlook _ Site visit 4: ESG leadership and commitment to Zero Harm beyond compliance
Slide 19: 5: Strong cash generation, balance sheet and dividend yield
Investment highlights Financial performance Pillar overview Strategic outlook _ Site visit 5: Strong cash generation, balance sheet and dividend yield 8 Free cash flow (Rbn) Gearing (%) and net borrowings (Rbn) Dividend yield (%) Average 2,8 18 19 20 2017 1. Gearing refers to interest-bearing debt l
Slide 20: Financial performance
Slide 21: Strong revenue growth despite challenging market environment
Investment highlights Financial performance Pillar overview Strategic outlook Site visit Strong revenue growth despite challenging market environment; 20 margin and ROIC recovered post 2020 2017 2018 2019 2020 2021 Revenue growth (%) | 7% CAGR ——_ 24,8 24) 26,1 Revenue (Rbn) =@ Profit from operation
Slide 22: Almost 50% of revenue comes from mining sector
Investment highlights Financial performance Pillar overview Strategic outlook Site visit Almost 50% of revenue comes from mining sector, followed by a agriculture, chemicals and F&B — all other sectors contribute <2% Revenue by sector - 2021 (%) ©) Pillar contribution — 2021 (%) 2 Mining | =": Bs Ag
Slide 23: Cash generation supports growth and shareholder returns
Investment highlights Financial performance Pillar overview Strategic outlook Site visit Cash generation supports growth and shareholder returns 2 Sources and uses of cash analysis (2017-21 cumulative), Rbn Sources Cash from operations 9,7 ) Net debt issued! | 1,5 0,4 Divestments Other 0,2 Uses Cape
Slide 24: Robust balance sheet to support working capital requirements
Investment highlights Financial performance Pillar overview Strategic outlook Site visit Robust balance sheet to support working capital requirements 2 inherent to the nature of our business Balance sheet (2017-21 Average) Assets PP&E Inventory Receivables Cash Goodwill Other 14% Equity and liabilit
Slide 25: Capital allocation
Investment highlights Financial performance Pillar overview Strategic outlook Capital allocation |» Capital allocation principles | Clear capital allocation priorities = Financial discipline and balance sheet management 4 C$) Capital commitment to sustain operations Commitment to rating well above i
Slide 26: Pillar overview
Slide 27: AECI Mining: industry trends and AECI's positioning
Investment highlights Financial performance Pillar overview Strategic outlook Site visit AECI Mining: industry trends and AECI’s positioning Key trends Strong demand growth from economic recovery 1 and correlated to speed of energy transition Short- to medium- term supply constraints support higher
Slide 28: AECI Mining: global presence and future strategic opportunities
Investment highlights Financial performance Pillar overview Strategic outlook _ Site visit AECI Mining: our global presence and future strategic opportunities 2 Current operations @ AECI Mining Explosives @ AECI Mining Chemicals Growth opportunities ” AECI Mining Explosives ” AECI Mining Chemicals O
Slide 29: AECI Mining: agile teams and processes
Investment highlights Financial performance _ Pillar overview Strategic outlook —_Site visi AECI Mining: agile teams and processes allow us to respond quickly 2 to customer needs and deploy our capabilities anywhere in the world
Slide 30: AECI Mining: innovation highlights
Investment highlights Financial performance Pillar overview Strategic outlook _Site vist AECI Mining: innovation highlights Our formulations have the capability to be transferred safely, efficiently and cost-effectively to record-breaking depths 90% reduction in greenhouse gas emissions and fuel cos
Slide 31: AECI Mining: innovation highlights
at highlights Finanei: formance Pillar overview — Strategic ok Site visit AECI Mining: innovation highlights 30 Wireless Electronics Cyberdet™ Fully wireless detonator, removes personnel from hazardous conditions with range up to 300m Blast Web Improved ease of use and application in underground bla
Slide 32: AECI Mining: financial performance
Investment highlights AECI Mining: financial performance Financial performance Financial highlights — 2021 Pillar overview Strategic outlook Revenue [EBITDA [Profit from _ || Trading Trade working operations margin capital R R R12 7, vA%, Ay 10,7% |15,3% ° ° ° |I2020:10,0% || 2020:13,7% AECI Mining
Slide 33: AECI Mining: strategic priorities
Investment highlights Financial performance Pillar overview Strategic outlook Site visit AECI Mining: strategic priorities Grow to become a leading global player 32 @) Continue geographic expansion into established mining markets (e.g., Australia, North and South America) Grow revenue from existing
Slide 34: AECI Water: industry trends and AECI's positioning
In ligh Fi | performan Pillar overview Strat AECI Water: industry trends and AEC? S positioning Key trends Water scarcity and access Water repurpose and reuse Decentralised water market Ageing/inefficient infrastructure Growing demand for greener chemistries Increased raw material pricing 33
Slide 35: AECI Water: innovation highlights
Investment highlight: Fin: ance Pillar overview Strate, AECI Water: innovation highlights 4 AEC] Water is successfully treating processed sewage effluent at AECI’s largest manufacturing site - reiterating AECI’s commitment to water reuse Site visit ° Treating processed sewage Water treatment plant a
Slide 36: Ambitious goals achieved through partnerships
– – – – – – – – – – – – These ambitious goals can only be achieved through partnerships that share our commitment to sustainability
Slide 37: AECI Water: financial performance
Investment highlights Pillar overview Financial performance Strategic outlook AECI Water: financial performance Financial highlights — 2021 Site visit 36 Historical financial performance (Rm) Revenue EBITDA Profit from ||Trading Trade working | TRIR operations —_||margin capital 6 0,34 R1541m R262m
Slide 38: AECI Water: strategic priorities
Investment highlights Financial performance Pillar overview Strategic outlook _ Site visit AECI Water: strategic priorities |» Premier holistic water and waste-to-value solutions provider in key geographies and high growth domains > ey 4 Focused geographic Product — continue to Customer synergies Ne
Slide 39: AECI Agri Health: industry trends and AECI's positioning
Investment highlights Financial performance Pillar overview Strategic outlook _Site vist AECI Agri Health: industry trends and AECI’s positioning x Key trends Why we win and how we grow feyeXe} . : (vip Population growth and food scarcity * Track record and holistic offering — Unrivalled distributor
Slide 40: AECI Plant Health: Biocult capacity expansion
Investment highlights Financial performance Pillar overview Strategic outlook _Site visit AECI Plant Health: Biocult biological products capacity expansion » by ~70% in the short term ee
Slide 41: AECI Plant Health: innovation highlights
Investment highlights Financial performance Pillar overview Strategic outlook _ Site visit AECI Plant Health: innovation highlights 40 Holistic and sustainable solutions to ..solutions backed by a complete innovative enhance crop performance... range of products ™ A proprietary, integrated crop °, O
Slide 42: AECI Schirm
Investment highlights Financial performance Pillar overview Strategic outlook _ Site visit AECI Schirm a Expand capacity and geographic footprint in USA AECI Schirm (USA) - Originally one site in USA, serving needs in the South-West USA region * Ennis, Texas - Production capacity increased with 4 ad
Slide 43: AECI Agri Health: financial performance
Investment highlights Pillar overview Financial performance Strategic outlook Site visit 42 Historical financial performance (Rm) AECI Agri Health: financial performance Financial highlights — 2021 Revenue [EBITDA | [Profit from [Trading Trade working |[TRIR operations —_||margin capital 0,36 R6020m
Slide 44: AECI Agri Health: strategic priorities
Investment highlights Financial performance _Pillar overview Strategic outlook _ Site visit AECI Agri Health: strategic priorities “ Deliver sustainable plant health solutions for a better world through innovation and excellence founded on “good chemistry” S 3 Focused international — Product portfol
Slide 45: AECI Chemicals: industry trends and AECI's positioning
ligh Fi | perf z Pillar overview Strat u Si AECI Chemicals: industry trends and AECI’s positioning Key trends! Declining South African manufacturing sector Deferred and reduced public infrastructure spend Supply chain and commodity prices Customers increasingly seeking security of supply 1. Sub-Saha
Slide 46: AECI Chemicals: financial performance
Investment highlights Financial performance _Pillar overview Strategic outlook _ Site visit AECI Chemicals: financial performance 4s Financial highlights — 2021 Historical financial performance (Rm) Revenue [EBITDA — [Profit from [Trading Trade working || TRIR I Revenue “@= Profit from operations op
Slide 47: AECI Chemicals: strategic priorities
Investment highlights Financial performance Pillar overview Strategic outlook Site visit AECI Chemicals: strategic priorities 4 The leading chemical solutions player in Sub-Saharan Africa © ¢& Selective growth Ecosystem — Trading — continue Active portfolio — based on Increased drive to _ to grow pr
Slide 48: Strategic outlook
Slide 49: Our past strategic achievements support our growth aspirations
Investment highligh Financial performan Pillar overview Strategic outlook Site vi Our past strategic achievements support our growth aspirations Not exhaustive 48 fe} Demonstrated our ability to enter and profitably grow in new markets atl outside of South Africa Track record of innovation and new p
Slide 50: AECI: strategic priorities going forward
Investment highligh Financial performan ew Strategie outlook —_—Site AECI: strategic priorities going forward Pursue international growth where we have competitive advantage (primarily Mining) Turnaround of underperforming businesses and setting clear targets for measuring delivery ZERO HARM Deliver
Slide 51: Thank you
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Slide 52: A=cr
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