Aeci Ltd · JSE:AFE
Aeci — Investor Day (June 2017)
50 slides from Aeci's investor day presentation, Jun 7, 2017
Slide 1: AECI Water Strategy Presentation
AECI WATER STRATEGY PRESENTATION INVESTOR DAY, 7 JUNE 2017
Slide 2: Overview, Markets and Strategy, Major Industry Segments, Going Forward
1. OVERVIEW 3. MAJOR INDUSTRY SEGMENTS 2. MARKETS AND STRATEGY 4. GOING FORWARD
Slide 3: Overview
OA=ClI’ Water
Slide 4: ImproChem's History
4 MPROCHEM'S HSTORY OA=CI Water good chemistry anikem >< ONDEO 1968 2001 2012 6 3 e @ r ) e@ e 1961 1997 2003 2014 Alexander 6) 100% x ve oo AECI Clariant OWNED NALCO-CHEMSERVE
Slide 5: Global population and water demand
GLOBAL POPULATION BY 2050 GROWTH IN GLOBAL WATER DEMAND BY 2050 OF GLOBAL POPULATION WILL NOT HAVE ACCESS T0 CLEAN WATER YEAR AGING INFRASTRUCTURE IN MATURE MARKETS
Slide 6: Making Water Work for Africa
MAKING WATER WORK FOR AFRICA R15bn MARKET IN SUB-SAHARAN AFRICA
Slide 7: Growth Drivers
7 GROWTH DRIVERS › Water scarcity is a global concern › Access to water for all in Africa › Mainly supported by population and industrial growth › Growing need for water reuse and recycling solutions in industrial and municipal markets › Tightened regulatory requirements regarding emissions and disc
Slide 8: ImproChem: Delivering Comprehensive Solutions
8 IMPROCHEM: DELIVERING COMPREHENSIVE SOLUTIONS
Slide 9: Big Data: Going Digital
9 BIGDATA CONGDGTAL 8 ImproChem OA=Cr good chemistry Water inherently OAC Water, Energy & Air Solutions Partner Water & Process Technologies DashBoard My Profile Heat Exchange Watch Folders/Templates Reports Log Off Module Stats MODULE Registered Modules 580 Status Modules Online 526 Sales Tech © ——
Slide 10: Big Data: Going Digital
JO pBicbwA cONcDGTAL Date Time 2017-06-01 14:37:00 2017-06-01 1432.00 2017-06-01 14:27:00 2017-06-01 14.22.00 2017-06-01 14.1700 2017-06-01 14.12.00 2017-06-01 14:07:00 2017-06-01 1402.00 2017-06-01 13:57:00 2017-06-01 1352.00 2017-06-01 13:47:00 2017-06-01 13.42.00 767 172 7.61 7.66 74 7.58 762 WT
Slide 11: Service Driven
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Slide 12: AECI Collaboration: Mine-to-Metal
12 AECI COLLABORATION: MINE-TO-METAL
Slide 13: Technology Partners
OA=Cl good chemistry » Chemical and Monitoring Solutions for liquid/solid separations, cooling systems and steam generation > Refinery and chemical process industries treatment technologies > Oil and gas production technology ) riINniShe uel additives and periormance chemicals Recochem =F\ilajictsj
Slide 14: Markets and Strategy
2 MARKETS AND STRATEGY
Slide 15: Four Major Regions of Operation
15 FOUR MAJOR REGIONS OF OPERATION Senegal Guinea › Operational in 29 Ethiopia countries South Sudan Uganda › 820 personnel Burkina Faso Ghana Nigeria Cameroon Kenya › Incl. 74 outside SA Equatorial Guinea DRC Seychelles Angola Tanzania › 18 distributors Malawi Zambia › 3 000+ customers Madagascar B
Slide 16: Focus Areas
16 FOCUS AREAS PUBLIC WATER, INDUSTRIAL, PROCESS, OIL AND GAS
Slide 17: ImproChem Market Share in Eight Industries
17 IMPROCHEM MARKET SHARE IN EIGHT INDUSTRIES EIGHT INDUSTRIES (R15bn TOTAL MARKET) R2,5bn R1,2bn R1,0bn R0,5bn R3,2bn R0,9bn R0,7bn R4,9bn
Slide 18: West Africa: Opportunities and Focus
18 WEST AFRICA: OPPORTUNITIES AND FOCUS MARKET = R3,8bn Public water R400m Mining R160m Refining Upstream R200m O&G R1,5bn
Slide 19: Ghana Water
19 GHANA WATER › Converted operation from alum sulphate to ImproChem’s polymer › Won tender during ’16 and supplied 650t › Additional 625t already secured in ’17 › 2 700t on tender
Slide 20: Central Africa: Opportunities and Focus
20 CENTRAL AFRICA: OPPORTUNITIES AND FOCUS MARKET = R3,2bn Public water R300m Mining R140m Upstream O&G R1,85bn
Slide 21: New Business: Angola
21 NEW BUSINESS: ANGOLA › Localisation required for Oil and Gas industry › Office opened in Angola in ’17, with local partner › First order for membrane chemicals received from Total › Collaborative effort with GE
Slide 22: Kansanshi Copper Mine, Zambia
22 KANSANSHI COPPER MINE, ZAMBIA › Utilities treatment at smelter › Customer experienced difficulties › Business gained January ’17 › Reducing operating costs and downtime › Optimising production › Full solution and service » Not limited to chemicals
Slide 23: East Africa Opportunities and Focus
23 EAST AFRICA OPPORTUNITIES AND FOCUS MARKET = R1,7bn Public water R320m Mining R130m F&B R200m
Slide 24: Mtibwa Sugar Mill, Tanzania
24 MTIBWA SUGAR MILL, TANZANIA › Water and utilities treatment › Customer experienced downtime from scaled-up boilers › Business gained in ’16 season › Improved feed water quality, reduced downtime, optimised production » Savings in operating expenses › Additional opportunities to build complete sol
Slide 25: Southern Africa Opportunities and Focus
25 SOUTHERN AFRICA OPPORTUNITIES AND FOCUS MARKET = R6,3bn Engineered Public water solutions R1,5bn R1,8bn Industrial R400m Chemical processing R200m
Slide 26: Major Industry Segments
3 MAJOR INDUSTRY SEGMENTS
Slide 27: Public Water
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Slide 28: Some Key Accounts Customers
28 SOME KEY ACCOUNTS CUSTOMERS
Slide 29: Western Cape Support
29 WESTERN CAPE SUPPORT THEEWATERSKLOOF › Boreholes sunk › Water quality laboratory work completed › Containerised treatment plant - clarification, filtration, disinfection › 12000 litres/hour – meeting needs of 2 000 people/day
Slide 30: Manage, Operate and Maintain Programme
30 MANAGE, OPERATE AND MAINTAIN PROGRAMME
Slide 31: Management, Operate and Maintain Programme
31 MANAGEMENT, OPERATE AND MAINTAIN PROGRAMME Current sand filters to be decommissioned Decommission Domestic supply tank tap off with 10kl Jojo tank Supply from hybrid packaged plant to clear water reservoir Supply from post flocculation reservoirs
Slide 32: Pietermaritzburg Plant: Dedicated to Public Water
32 PIETERMARITZBURG PLANT: DEDICATED TO PUBLIC WATER
Slide 33: Industrial
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Slide 34: Some Key Accounts: Industrial
34 SOME KEY ACCOUNTS: INDUSTRIAL
Slide 35: Some Key Accounts: Food and Beverage
35 SOME KEY ACCOUNTS: FOOD AND BEVERAGE
Slide 36: Tenke, DRC
36 TENKE, DRC › New sulphuric acid plant required demin water, side stream filtration, condensate polishing, potable water › R55m equipment installation » Turnkey project › Ongoing chemical sales and support › IRR of 46% › Monitoring and control
Slide 37: Amandelbult (Dishaba)
37 AMANDELBULT (DISHABA) › Designed and built water treatment plant to upgrade surplus fissure water to process, potable and service water quality » Clarification, dual media and cartridge filtration followed by reverse osmosis and disinfection technologies » 10-year contract to operate and maintain
Slide 38: Vale, Mozambique
38 VALE, MOZAMBIQUE › 3 projects › Moatize mine required to treat surplus mine water to meet Zambezi River discharge standards › 5,2 million litres/day treated » Pre-oxidation – clarification – DM filtration – reverse osmosis › Plant commissioned November ’16 › ImproChem project underway to polish a
Slide 39: Process
39 process OA=Cl Water good chemistry GAS — (® } To chemical a processing IN) FERTILIZERS Gasoline ra l] = diesel N ba > o> | E Heating oi cc Lubricant aaa r wax CRUDE OIL/GAS REFINING SOURCE Aspalt 2 Asset Ir J rier [> [ Corrosion & ‘Sulphide Control Overhead Corrosion Opportunity Crude Processing
Slide 40: Some Key Accounts
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Slide 41: Growth Project, Nigeria
41 GROWTH PROJECT, NIGERIA
Slide 42: Water Recovery Plant: Chevron Refinery
42 WATER RECOVERY PLANT: CHEVRON REFINERY
Slide 43: Case Study: Refinery and Wastewater
43 CASE STUDY: REFINERY AND WASTEWATER › Refinery needed to reduce potable water usage by utilising alternate water sources › Designed BOO water treatment plant to upgrade treated sewage effluent to industrial water quality - boilers and cooling towers › Utilised dissolved air flotation, ultra-filtr
Slide 44: Upstream Oil and Gas
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Slide 45: Some Key Accounts
45 SOMEKEY ACCOUNTS D TOTAL Nigeria LNs, LNG ===> Limited OA=Cl good chemistry SASOL Water
Slide 46: Going Forward
4 GOING FORWARD
Slide 47: In the News
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Slide 48: Acquisition of GE Water
Acquisition of GE Water Stepping up into the Industrial Water Services Market
Slide 49: Conclusion
49 CONCLUSION › A sizeable and growing market › Good growth opportunities in Africa › ImproChem has the right technology partners and a comprehensive value proposition › Well positioned and established footprint in Africa › Public Water is a key focus area › Significant opportunities in upstream Oil
Slide 50: Thank You
MAKING WATER WORK FOR AFRICA 4 ¢ 66