Slide 1: Interim Results for the half-year ended 30 June 2021
2021 INTERIM RESULTS For the half-year ended 30 June 2021 28 July 2021
Slide 2: Welcome & Introduction
WELCOME & INTRODUCTION 01. COVID-19 UPDATE 02. PERFORMANCE SUMMARY 03. OTHER BUSINESS DRIVERS 04. EARNINGS ANALYSED 05. PERFORMANCE BY SEGMENT 06. STRATEGIC PROGRESS, OUTLOOK & FOCUS
Slide 3: Non-Executive Directors
NON-EXECUTIVE DIRECTORS 2 Khotso Mokhele Steve Dawson Fikile De Buck Walter Dissinger Godfrey Gomwe Rams Ramashia Marna Roets Philisiwe Sibiya Patricia (Patty) O’Brien
Slide 4: Recent Civil Unrest in SA
RECENT CIVIL UNREST IN SA 3 – Violence, looting and lawlessness a matter of extreme concern – Safety of our people our priority › Some employees and their families, in KZN and Gauteng, directly affected › Their wellbeing is paramount – continue to monitor and assist wherever possible – Minor disrupt
Slide 5: Counting the Cost: One Estimate
COUNTING THE COST: ONE ESTIMATE 4 19 JULY ’21 Source: SAPOA
Slide 6: COVID-19 update
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Slide 7: COVID-19 Active Dashboard as at 26 July 2021
COVID-19 ACTIVE DASHBOARD AS AT 26 JULY ’21 6 COVID-19 TESTS 9 1 136 60 51 1 025 40 2 170 Total awaiting test results Total negative tests 20 9 8 7 4 1 1 0 4 2 2 Total positve cases Total tests 0 ACTIVE CASES BY AGE AND GENDER Female Zambia 60-69 2 20 4 active cases 50-59 20 40-49 30 Zimbabwe 2 acti
Slide 8: COVID-19 Landscape: Cumulative Cases in SA
COVID-19 LANDSCAPE: CUMULATIVE CASES IN SA AT 26 JULY ’21 7 SOUTH AFRICA’S COVID-19 WAVES TOTAL NUMBER QUARANTINED Active Recovered Hospitalised Mortality 869 Indirect Contact 168 1 067 RECOVERY RATE 7 10 11% Site Requirements 77 700 Exhibiting Symptoms 325 AECI’S COVID-19 WAVES 511 511 2,500 Direct
Slide 9: COVID-19 Landscape: International
COVID-19 LANDSCAPE: INTERNATIONAL 26 JULY ’21 8 Active Recovered Hospitalised Mortality TOTAL NUMBER QUARANTINED 156 380 TESTS CONDUCTED Indirect contact 21 228 137 0 Site requirements 52 117 118 Positive Exhibiting symptoms 13 156 tests 103 1 1 Negative Direct contact 142 97 224 tests 1 COMPANY BRE
Slide 10: COVID-19 Relief Initiatives
COVID-19 RELIEF INITIATIVES 9 R22 m invested to date R17,5m R4,5m Multiple partnerships Impacting and collaborations 35 communities invested in other COVID-19 raised for food parcels • Employees relief initiatives 15 350 distributed • CSI funds • Suppliers • Customers
Slide 11: COVID-Relief Initiatives
COVID-RELIEF INITIATIVES 10 50 handwashing stations PPE for 1 000 medical staff 65 handwashing devices at 20 000 litres of 300 test kits at public clinics and schools in under-resourced hospitals communal taps in Ekurhuleni sanitiser distribution 200 Hippo rollers to safely 3x water filtration skids
Slide 12: COVID-Relief Initiatives
COVID-RELIEF INITIATIVES 11 3 000 litres of sanitizer donated to Gauteng Filtration skid for rural community 125 OxERA Emergency Oxygen Therapy Clean drinking water for Department of Education by Dow Chemical in Adelaide. 200x Hippo rollers and food devices donated to Tembisa hospital 1 450 learners
Slide 13: Food Parcel Distribution
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Slide 14: Performance summary
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Slide 15: COVID-19 impact less severe than 1H20 but still evident
PERFORMANCE SUMMARY 14 COVID-19 impact less severe than 1H20 but still evident ─ Availability and roll-out of vaccinations not uniform across the globe ─ Extent and rate of recovery uneven across world economies and sectors of activity ─ Spread of Delta variant infections has added to uncertainty ─
Slide 16: Performance Summary: Resilience Through Diversity
PERFORMANCE SUMMARY: RESILIENCE THROUGH DIVERSITY 15 REVENUE HEPS +5% to R11 802m +120% to 529c Foreign & export revenue: 43% of total revenue EBITDA GEARING +23% to R1 453m 27% (1H20: 32%) PROFIT FROM OPERATIONS INTERIM CASH DIVIDEND OF +70% to R948m 180c DECLARED
Slide 17: Safety Performance Improvement
PERFORMANCE SUMMARY 16 SAFETY PERFORMANCE IMPROVEMENT TRIR of 0,36 (Dec ‘20: 0,42) LEVEL 3 B-BBEE CONTRIBUTOR GCR rating A+ With stable outlook maintained
Slide 18: Improved Safety Performance: TRIR
IMPROVED SAFETY PERFORMANCE: TRIR 17 1,0 0,8 0,6 0,58 0,42 0,39 0,38 0,4 0,36 0,2 0,0 2017 2018 2019 2020 1H21
Slide 19: Business drivers
03. Business ~ drivers:
Slide 20: Business Drivers: ZAR/US$ Exchange Rate
BUSINESS DRIVERS: ZAR/US$ EXCHANGE RATE 19
Slide 21: Business Drivers: Gold
BUSINESS DRIVERS: GOLD 20 Source: Bloomberg
Slide 22: Business Drivers: PGMs
BUSINESS DRIVERS: PGMs a4 Q2 Q3 Q4 202101 === Rhodium === Palladium == Platinum Source: Bloomberg ee a
Slide 23: Business Drivers: Cobalt, Copper & Nickel
BUSINESS DRIVERS: COBALT, COPPER & NICKEL 22
Slide 24: Business Drivers: Coal & Iron Ore
BUSINESS DRIVERS: COAL & IRON ORE 23
Slide 25: Business Drivers: SA Mining Volumes
BUSINESS DRIVERS: SA MINING VOLUMES 24
Slide 26: Business Drivers: Total Value of Monthly SA Mineral Sales
BUSINESS DRIVERS: TOTAL VALUE OF MONTHLY SA MINERAL SALES 25
Slide 27: Business Drivers: Brent Crude Oil
BUSINESS DRIVERS: BRENT CRUDE OIL 26
Slide 28: Business Drivers: SA Manufacturing Volumes
BUSINESS DRIVERS: SA MANUFACTURING VOLUMES 27
Slide 29: Unreliability of Global Shipping
UNRELIABILITY OF GLOBAL SHIPPING 28 – Average days’ delay for vessel arrivals increasing – Unreliability expected to persist › Ongoing port congestion › Suez Canal incident in March ’21
Slide 30: Performance analysed
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Slide 31: Performance Analysed
PERFORMANCE ANALYSED 30 % 1H21 1H20 change Profit from Profit from Profit from Revenue EBITDA operations HEPS Revenue EBITDA operations HEPS Revenue EBITDA operations HEPS (Rm) (Rm) (Rm) (cps) (Rm) (Rm) (Rm) (cps) (%) (%) (%) (%) Reported 11 802 1 453 948 529 11 265 1 180 558 240 4,8 23,1 69,9 120,4
Slide 32: Earnings Analysed
EARNINGS ANALYSED 31 HEPS (cents) – EBITDA +23% to R1 453m 1 200 1 150 – Profit from operations +70% to R948m 1 045 – HEPS +120% to 529c 1 000 959 880 – Trading margin 8,0% (June’20: 5,0%) 818 – Rolling 12-month RONA excl. impairments 800 14,4% (June’20: 11,4%) 529 600 – Tax rate unchanged at 32% 45
Slide 33: COVID-19: Cash Management
COVID-19: CASH MANAGEMENT 32 – Capex = R365m 4 500 4 177 100 % › R75m for expansion projects 4 030 90% 4 000 › R290m for sustenance – Future capital commitments = R1 116m 80% 3 500 › R353m contracted for 3 000 2 902 70% › R763m not contracted for 60% › Major capital expansion projects of R575m over
Slide 34: Net Debt and Cash Utilisation
NET DEBT AND CASH UTILISATION 33 Rm Net cash Net generated Changes in Settlement of Net borrowings at from Net interest working Lease performance Borrowings borrowings at 31 Dec '20 operations paid Tax paid capital Net capex Dividends paid payments shares raised Other 30 Jun '21 1 573 (92) (269) (74
Slide 35: Net Debt Analysis
NET DEBT ANALYSIS 34 PAYMENT PROFILE Rm 2021 2022 2023 TOTAL Gross Gross borrowings Borrowings Borrowings borrowings DMTM auction 360 520 880 at 31 Dec '20 paid raised FX at 30 Jun '21 DMTN private placement 500 300 800 5 420 110 (1 100) (91) 4 339 Term – ZAR 200 500 700 Term – US$ 199 214 285 698 T
Slide 36: Performance by segment
05. Performance by segment
Slide 37: Performance by Segment: Reported
PERFORMANCE BY SEGMENT: REPORTED 36 Segment Revenue EBITDA Profit from ops R5 571m R902m R646m AECI MINING 3,2% 30,0% 64,4% R761m R130m R106m AECI WATER 12,6% 3,2% 6,0% R2 438m R130m R29m AECI AGRI HEALTH 12,8% 46,5% 78,8% R2 970m R348m R252m AECI CHEMICALS 26,3% 94,4% >100%
Slide 38: AECI Mining
Slide 39: AECI Mining
AECI MINING 38 Revenue EBITDA Trading profit Trading margin Trade WC R694m R393m 7,3% -12,9% -21,2% 11,6% 19,7% R5 571m R902m R646m (1H19: 8,9%) 14,7% 3,2% Underlying 30,0% Underlying 64,4% (1H19: (1H20: 18,3%) 19,7%) 1H20: R1 090m (1H20: 7,3%) Underlying 1H20: R789m 20,9% 30,8% 1H20:
Slide 40: AECI Mining: Revenue by Mineral Mined (%)
AECI MINING: REVENUE BY MINERAL MINED (%) 39 8 2 Gold 23 5 9 PGMs 25 8 Coal 5 Copper 18 Diamond 16 16 Iron ore 23 Other minerals (˂1%) 21 21 Outer:1H21 Inner: 1H20
Slide 41: AECI Mining Explosives: Ammonia Price
AECI MINING EXPLOSIVES: AMMONIA PRICE 40
Slide 42: AECI Mining Explosives
AECI MINING EXPLOSIVES 41 – Overall bulk explosives volumes -9,6% › Replaced major portion of SA bulk commodity product volumes lost in 1H20 (surface mining) › Lower offtake by coal mining sector in SA › Lower volumes in Indonesia Southern Africa – Limited COVID-19 impact in 1H21 – Initiating system
Slide 43: AECI Mining Explosives Cont.
AECI MINING EXPLOSIVES CONT. 42 Central and East Africa – Good growth › Although some mines have yet to resume operations (COVID-19) West Africa – Volumes remained robust
Slide 44: AECI Mining Explosives Cont.
AECI MINING EXPLOSIVES CONT. 43 Asia Pacific – Best-ever results from business in Australia › Thiess contract extended for another 5 years › Contract secured in NSW » Mobilise in 4Q21 – Recovery in Indonesia in 2Q › Extreme weather conditions, mining contractor’s machine breakdowns and free-digging
Slide 45: AECI Mining Chemicals
AECI MINING CHEMICALS 44 – Liquid xanthates › Good recovery from COVID-19-affected 1H20 in SA’s PGM mining sector › Depressant and liquid xanthates volumes recovered in full – Lower solid xanthate sales › Volumes for exports restricted by planned plant shutdown – Flocculants volumes also lower › Maj
Slide 46: AECI Mining: Outlook
AECI MINING: OUTLOOK 45 – Southern Africa – Australia: mobilise for NSW contract by 4Q21 › Ramp up underground bagged emulsion system – Indonesia: progress granulator plant at BBRI facility › Improve asset utilisation – LatAm: progress emulsifier blending facility in › Mitigate supply chain risks Br
Slide 47: AECI Water
Slide 48: AECI Water
AECI WATER 47 Revenue EBITDA Trading profit Trading margin Trade WC R676m R126m R100m -4,4% R130m 70,3% R106m 104,1% 13,9% 23,7% 19,9% R761m 12,4% 12,6% 3,2% Underlying Underlying 6,0% Underlying (1H20: 14,8%) (1H19: (1H20: 18,4%) 23,7%) 1H20: R709m 1H20: R150m 1H20: R124m 0,3% 19,
Slide 49: AECI Water: Revenue by Industry (%)
AECI WATER: REVENUE BY INDUSTRY (%) 48 22 27 21 35 Public water Mining Oil and refining 22 Industrial and other 18 30 Outer: 1H21 Inner: 1H20 25
Slide 50: AECI Water: Project Purpose
AECI WATER: PROJECT PURPOSE 49 – AECI sites › AECI Mining Explosives, Modderfontein » Phase 1 potable water replacement project commissioned in December ’20 – raw water supply challenges ’21 » Phase 2 effluent discharge reduction and water reuse – good progress made, expect commissioning 1Q22 › AECI
Slide 51: AECI Water: Project Purpose
AECI WATER: PROJECT PURPOSE 50 – Public water › MOUs signed at major Waste Water Treatment Entity in Gauteng – Technical and Project Committee established › Lesotho project awarded earlier – completion in 3Q › CSI project at Goza Primary School, Soweto, completed 2Q › Water treatment plant, Eastern
Slide 52: AECI Water: Outlook
AECI WATER: OUTLOOK 51 – Positive overall › New tenders awarded in mining sector (Central and West Africa) › Extended public water trials/new business (Central and West Africa) › Non-recurrence of Project Purpose delays › Pricing improvements – Better Water: 2 green technology chemical trials in 3Q
Slide 53: AECI Agri Health
Slide 54: AECI Agri Health
AECI AGRI HEALTH 53 Revenue EBITDA Trading profit Trading margin Trade WC R2 616m R229m R126m 4,8% 19,5% 21,2% R29m 22,3% 1,2% 14,5% 17,5% R2 438m -13,5% R130m Underlying Underlying 78,8% Underlying (1H19: 4,7%) (1H19: 18,2%) 12,8% 46,5% (1H20: 4,9%) Underlying (1H20: 14,7%) 1H20: R2 36
Slide 55: AECI Schirm
AECI SCHIRM 54 ─ Germany: poor 1H21 result reflects ongoing local impact of COVID-19 › Output by automotive sector restricted by global shortage of electronic components › Disrupted chemical raw material supply chain ex China › No production of sugar beet herbicide on synthesis plant › High inventor
Slide 56: AECI Schirm: Outlook
AECI SCHIRM: OUTLOOK 55 – Tender awarded by major customer › Commencing in ’22, for 3 years › 8 million litres per annum – Shortlisted for another tender › Outcome expected in 3Q – Restructuring of production capacity on Lübeck site completed – Capex › Germany: 13 000 pallet warehouse complex at Sch
Slide 57: AECI Plant Health
AECI PLANT HEALTH 56 – Strong demand trend continued – Working capital impacted by mitigation of supply chain challenges › Raw material shortages and shipping delays – Continued focus on R&D and registrations, particularly green chemistry › Biostimulants and biologicals » Biostimulants = 20% of in-h
Slide 58: AECI Plant Health: Outlook
AECI PLANT HEALTH: OUTLOOK 57 – Momentum into 2H › Good winter rainfall in Western Cape – Expansion of synthesis plant in Gauteng to support in-house product growth – Finalise additional registrations in USA and other countries – Biocult expansion complete by year-end › 70% increase in capacity – Be
Slide 59: AECI Chemicals
Slide 60: AECI Chemicals
AECI CHEMICALS 59 Revenue EBITDA Trading profit Trading margin Trade WC R2 970m R348m R252m 8,5% 16,2% 26,3% 94,4% >100% (1H20: 0,5%) (1H20: 15,6%) – Highly cash generative – Business realignment project complete › R100m structural and sustainable annualised benefits on track › Quality of earni
Slide 61: AECI Chemicals
AECI CHEMICALS 60 AECI Specialty Chemicals – Strong performance › Volume and margin improvement in personal care, polymers, coatings and construction › Notable volume growth in oleochemicals and major contract renewed for 3 years › Major contract also renewed for 3 years in can coatings AECI Industr
Slide 62: AECI Chemicals Cont.
AECI CHEMICALS CONT. 61 AECI Food & Beverage – Portfolio focused on high growth product categories – Excellent momentum in traded food ingredient products continues – Beverages › Consistent y-o-y improvement - operational efficiencies, cost management, pricing interventions › Appointed new distribut
Slide 63: AECI Chemicals: Outlook
AECI CHEMICALS: OUTLOOK 62 – SA manufacturing sector recovering off a low base – Demand trend in key customer industries expected to continue – Benefits of market share gains – Mining commodity price boom will provide impetus in certain manufacturing sectors – Export volume growth a focus – Supply c
Slide 64: AECI Much Asphalt: Review
AECI MUCH ASPHALT: REVIEW 63 – Volume increase vs ‘20, but still down approx. 20% vs ’19 – Recovery slower than anticipated but acceleration in 2Q21 – Bitumen supply – interruptions at two refineries and planned shutdown at third › Strategic inventory key to maintain service levels › Imported bulk s
Slide 65: AECI Much Asphalt: Outlook
AECI MUCH ASPHALT: OUTLOOK 64 – Key capabilities to deliver high volume market intact – Uncertainty on timing of infrastructure projects announced by government – Most major customers indicating increased activity levels in medium term – Upward trend in mobile-type work – Major contract secured in E
Slide 66: Strategic progress, outlook & focus
06. Strategic progress, outlook & focus
Slide 67: Strategy 2025: Driven by Our Purpose
STRATEGY 2025: DRIVEN BY OUR PURPOSE 66 ENABLED BY 3 STRATEGIC PLATFORMS AND 6 STRATEGIC THEMES (1+3+6) Passionate, Financial & risk purpose-led stewardship people Customer- Growth centricity Business Partnerships & excellence ecosystems
Slide 68: Sustainability
SUSTAINABILITY 67 – Sustainability Framework and ’25 targets agreed, report issued – Key focus areas, aligned with selected UN SDG goals › SDG 2 Zero hunger › SDG 6 Clean water and sanitation › SDG 8 Decent work and economic growth › SDG 12 Responsible production and consumption › SDG 13 Climate act
Slide 69: Global Transition to Zero-Carbon Alternatives
GLOBAL TRANSITION TO ZERO-CARBON ALTERNATIVES 68 Origin Materials ─ Strategic investment of US$5m in ’17 ─ Progress slow for first 3 years ─ Merger with Artius (SPAC) followed by Nasdaq listing in 2Q21 Going Green ─ US$1,8bn order book + ─ Capital raise - pioneer plant and first industrial scale pla
Slide 70: Outlook
OUTLOOK 69 – COVID-19 risk remains › Duration of current and future waves › Progress with roll-out of mass vaccination programmes, and their long-term efficacy › Timing on global scale of economic/activity recovery from current pandemic › Supply chain disruptions/raw material shortages persist ─ Thi
Slide 71: Focus to Year-End
FOCUS TO YEAR-END 70 – Zero Harm – COVID-19 vaccinations for all employees, their families and communities – Progress achievement of 2025 goals and targets aligned with UN SDGs – Progress Strategy 2025 execution in line with plan – Diligent cash, working capital and cost management – Capital expansi
Slide 72: Thank You
OA=CI THANK YOU