Slide 1: Interim Financial Results Presentation
INTERIM For the half-year ended 30 June 2016 FINANCIAL RESULTS PRESENTATION 26 and 27 July 2016
Slide 2: Presentation Outline
PRESENTATION OUTLINE 1 1. PERFORMANCE SUMMARY 2. BUSINESS ENVIRONMENT 3. RESULTS ANALYSED 4. SEGMENTAL PERFORMANCE 5. OUTLOOK 6. OBJECTIVES 7. CHANGES TO THE BOARD OA=CI good chemistry A world in one company. MINING SOLUTIONS | WATER SOLUTIONS | FOOD ADDITIVES AGROCHEMICALS | SPECIALTY CHEMICALS
Slide 3: Performance Summary
PERFORMANCE Ea) SUMMARY OASCI good chemistr:
Slide 4: Performance Summary
GROUP PROFIT FROM OPERATIONS -42,4% TO R57‘1m R294m from Somerset West bulk property sale in ‘15 R136m (non-cash) loss on settlement — PRMA de-risking HEPS SAFETY INTERIM CASH -A8% PERFORMANCE: DIVIDEND +8% TRIR OF 0,38 TO 135cps HEPS +15% after adjusting for |n 5 continents, 30 countries Dividend c
Slide 5: World-class safety performance: TRIR of 0,38
WORLD-CLASS SAFETY PERFORMANCE: TRIR OF 0,38 4
Slide 6: Business Environment
BUSINESS eat ENVIRONMENT OASCI good chemistr:
Slide 7: Business Environment: SA Mining Volumes
BUSINESS ENVIRONMENT 6 SA MINING VOLUMES Source: Stats SA
Slide 8: Historical Price Performance – Gold, Platinum and Copper
BUSINESS ENVIRONMENT 7 HISTORICAL PRICE PERFORMANCE – GOLD, PLATINUM AND COPPER Source: SNL
Slide 9: Historical Price Performance – Coal and Iron Ore
BUSINESS ENVIRONMENT 8 HISTORICAL PRICE PERFORMANCE – COAL AND IRON ORE (US$/t) Source: SNL
Slide 10: Business Environment: Mining
BUSINESS ENVIRONMENT: MINING 9
Slide 11: SA Manufacturing Volumes
BUSINESS ENVIRONMENT 10 SA MANUFACTURING VOLUMES Source: Stats SA
Slide 12: ZAR/US$ Exchange Rate
BUSINESS ENVIRONMENT 11 ZAR/US$ EXCHANGE RATE Source: INET Bridge
Slide 13: Brent Crude Oil (US$/bbl)
BUSINESS ENVIRONMENT 12 BRENT CRUDE OIL (US$/BBL) Source: INET Bridge
Slide 14: Results Analysed
RESULTS 3 ANALYSED OASCI good chemistr:
Slide 15: Earnings Analysed
EARNINGS ANALYSED 4 »Profit from operations -42% HEPS to R571m »EBITDA -30% to R897m »Adjusted EBITDA +14% to R1,0bn » R136m expense — post-retirement obligations de-risking »HEPS -48% to 293c »R843m repatriated via dividends »Tax rate: 31% (15: 23%) » Foreign withholding tax 12 mg 1H (cps) mam FY (
Slide 16: Underlying 1H Performance
UNDERLYING 1H PERFORMANCE 15
Slide 17: Cash Utilisation
CASH UTILISATION 16 » Capex controlled to below depreciation and amortisation » R236m — incl. R77m for expansion projects »NWC to revenue: 17,9% (21,2% in Jun 15) » Net borrowings: R1 524m » Gearing at 17% vs 20% in Jun ‘15 (18% in Dec “15) » Cash interest cover: 8,4 » Dividend cover for the period:
Slide 18: Analysis of Corporate Costs
ANALYSIS OF CORPORATE COSTS 17
Slide 19: Analysis of Defined-Benefits Costs
ANALYSIS OF DEFINED-BENEFITS COSTS 18
Slide 20: Segmental Performance
SEGMENTAL PERFORMANCE alll@} | OASCI good chemistr:
Slide 21: Profit from Operations by Segment (Rm)
PROFIT FROM OPERATIONS BY SEGMENT (Rm) 20
Slide 22: Property Performance
PROPERTY 21 PERFORMANCE REVENUE R195m (15: R6O7m) PROFIT FROM OPERATIONS R44m (15: R393m) Rental occupancy remains excellent at Umbogintwini and stable at Modderfontein Investigating opportunities to develop vacant land at Umbogintwini Leasehold basis Existing demand Good efficiencies in Services bu
Slide 23: Explosives Performance
EXPLOSIVES PERFORMANCE Revenue R4 154m +5,0% Profit from operations +3,8% Trading margin 5,3% (15: 5,4%) Trade WC 11% (15: 22%) OVERALL EXPLOSIVES VOLUMES -0,5% INITIATING SYSTEMS ISAP fully loaded FOCUSED WC PROJECTS 60% OF REVENUE NOW GENERATED OUTSIDE SA OA=CI good chemistry
Slide 24: Explosives cont. – South Africa
EXPLOSIVES cont. 23 SOUTH AFRICA VOLUME RECOVERY POSITIVE TREND IN EXPECTED IN 2H16 GOLD MINING New large contracts secured (effective May and Jun 16) NEGATIVE IMPACT ON MARGINS OF RETENDERING PROCESSES Majority of business retained but margin sacrificed Full impact seen in results EXPLOSIVES INITIA
Slide 25: Explosives cont.: Flooded Open Pit Mines
EXPLOSIVES CONT. 24 FLOODED OPEN PIT MINES
Slide 26: Explosives cont. – Indonesia and Australia
EXPLOSIVES cont. 25 INDONESIA AND AUSTRALIA OVERALL VOLUMES IN THE REGION +7,4% BBRI volumes stable GOOD VOLUME GROWTH INDONESIA IN AUSTRALIA Long cycles for net input Highest emulsion production to VAT refunds > date at Bajool plant Good cost control OA=Cr good chemistry
Slide 27: Specialty Chemicals Cluster
SPECIALTY CHEMICALS CLUSTER 26
Slide 28: Specialty Chemicals: Revenue by Market Sector
SPECIALTY CHEMICALS: R4 983m REVENUE BY MARKET SECTOR (%) 27
Slide 29: Specialty Chemicals Performance
SPECIALTY CHEMICALS 2 PERFORMANCE Revenue R4 983m +13,4% Profit from operations R573m +7,1% Trading margin 11,5% (15: 12,1%) Trade WC 19% (15: 21%) UNDERLYING PERFORMANCE: PROFIT FROM OPERATIONS Reported R573m R532m +1,1% — Gain on Resinkem bargain purchase — (R23m) — Profit on disposal of Mobeni si
Slide 30: Specialty Chemicals cont.
SPECIALTY CHEMICALS CONT. 29
Slide 31: Specialty Chemicals cont.
SPECIALTY CHEMICALS CONT. 30
Slide 32: Specialty Chemicals cont.
SPECIALTY CHEMICALS CONT. 31
Slide 33: Outlook
OUTLOOK B OASCI good chemistr:
Slide 34: Economic Outlook
ECONOMIC OUTLOOK tae Pig: SOUTH AFRICA i Growth under pressure for the foreseeable future Low business confidence and weak fixed investment Slowdown in China expected to continue Cycle of exceptionally low growth and manufacturing Strong US$ capacity underutilisation Household consumption expenditur
Slide 35: 1H16 Revenue by Strategic Pillar
1H16 REVENUE BY STRATEGIC PILLAR 34
Slide 36: AECI Mining Solutions
AECI MINING SOLUTIONS AECI eu eae =XPsAs= MINING SOLUTIONS OA=Cr good chemistry
Slide 37: Group Mining Revenue by Mineral Mined
GROUP MINING REVENUE BY MINERAL MINED (%) 36
Slide 38: Mine-to-Metal Value Wheel
MINE-TO-METAL VALUE WHEEL 37
Slide 39: Opportunities: Pre-operational African Mining Projects
OPPORTUNITIES: PRE-OPERATIONAL AFRICAN MINING PROJECTS 38
Slide 40: AECI Mining Solutions: Explosives
AECI MINING SOLUTIONS: EXPLOSIVES 39
Slide 41: Vertical Drop 185 Metres – Underground Pumpable Explosives
VERTICAL DROP 185 METRES – UNDERGROUND PUMPABLE EXPLOSIVES 40 Surface delivery port Delivery pipe from surface 3 x 30 emulsion storage tanks Electronic › Reduction in travelling dashboard for › Full auto inventory control system control
Slide 42: Pumpable Underground Explosives
PUMPABLE UNDERGROUND EXPLOSIVES 41 › Lightweight › One man operation › 330 pumps deployed in gold mining market › Potential for further 1 600 pumps in gold mining market
Slide 43: AECI Mining Solutions: Chemicals
AECI MINING SOLUTIONS: CHEMICALS 42
Slide 44: New Technical and R&D Centre
NEW TECHNICAL AND R&D CENTRE 43
Slide 45: Water Solutions
WATER SOLUTIONS a4 ImproChem Water & WATER SOLUTIONS OA=Cr good chemistry
Slide 46: Water Solutions: Potential in Public Water in Africa
WATER SOLUTIONS: POTENTIAL IN PUBLIC WATER IN AFRICA 45
Slide 47: Water Solutions: Assisting Local Authorities
WATER SOLUTIONS: ASSISTING LOCAL AUTHORITIES 46
Slide 48: Water Solutions: Assisting Local Authorities cont.
WATER SOLUTIONS: ASSISTING LOCAL AUTHORITIES CONT. 47
Slide 49: Agrochemicals
AGROCHEMICALS AECI “* WULANDIS AGROCHEMICALS OA=Cr good chemistry
Slide 50: Agrochemicals
AGROCHEMICALS 49 Further benefits of acquisitions and footprint enhancement Holistic strategy includes “green” products Capex investment for growth under review OA=CI good chemistry
Slide 51: Nulandis: Precision Sciences
NULANDIS: PRECISION SCIENCES 50
Slide 52: Food Additives and Ingredients
FOOD ADDITIVES AND INGREDIENTS 51
Slide 53: Food Additives and Ingredients
FOOD ADDITIVES AND INGREDIENTS 52
Slide 54: Specialty Chemicals
SPECIALTY CHEMICALS AECI PORTFOLIO OF SPECIALTY CHEMICALS BUSINESSES
Slide 55: Specialty Chemicals: Balance of Portfolio
SPECIALTY CHEMICALS: BALANCE OF PORTFOLIO 54
Slide 56: Objectives
OBJECTIVES OASCI good chemistr:
Slide 57: Objectives: '16
OBJECTIVES: 16 56 Expand and leverage geographic footprint further » Partnerships with customers » Maximise logistics and warehousing capability in the African continent Pursue more acquisitions in SA, the rest of Africa and internationally in support of strategic growth nillars Enhance the focus on
Slide 58: Changes to the Board
CHANGES T0 THE BOARD 1G; =cr — good chemistry SVAN
Slide 59: Changes to the Board
Graham Khotso Moses Dempster Mokhele Kgosana 31 January 16 1 March 16 1 September 16 OA=CI good chemistry
Slide 60: Disclaimer
DISCLAIMER 59 This document has been prepared and issued by and is the sole responsibility of the management of AECI Ltd (the “Company”) and its subsidiaries. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or s
Slide 61: Thank You
THANK YOu OA=CIr good chemistry