Afrimat Limited · JSE:AFT
Afrimat — FY2025 Earnings Presentation
62 slides from Afrimat's earnings presentation, May 2025
Slide 1: Comprehensive performance report
Comprehensive performance report for the year ended 28 February 2025
Slide 2: Core message
Core message 1 2 3 “Lafarge” acquisition Challenges across Strategically successfully the year dealt with in positioned for long integrated meaningful way term sustainability 2
Slide 3: Why we exist
01 WHY WE EXIST Consciously making a difference through excellence with integrity
Slide 4: The Afrimat Way
The Afrimat Way Excellence with Integrity 4
Slide 5: What we do
WHAT WE DO 02 A leading, empowered mid-tier mining and materials supply company
Slide 6: What we do
What we do Track record of excellence and competence in mid-tier mining and materials supply Construction Industrial Bulk Future Materials Materials Minerals Commodities and Metals Aggregates | readymix | concrete Limestone | dolomite Iron ore | anthracite | manganese Phosphate | rare earth elements
Slide 7: Highlights
Highlights ▪ Successful integration of Lafarge SA business ▪ Revitalisation of cement operations • Regaining market share ▪ Recovery in Industrial Minerals ▪ Progress at Nkomati • Environmental Impact Assessment (EIA) • Graves • Houses • Power line, water line ▪ Bolstering of iron ore volumes ▪ Secu
Slide 8: Year-on-year PBIT movement per business unit
Year-on-year PBIT movement per business unit 1 400 77 21 1 200 1 152 12 45 1 000 - 285 R’million 800 600 149 478 - 551 400 - 120 - 22 200 0 8
Slide 9: How we do it
HOW WE DO IT 03 Culture of care in all that we do and a thriving entrepreneurial spirit
Slide 10: Sustainability and ESG
Sustainability and ESG 1 Development, health and safety and integration of our employees 2 Social license to operate – total CSI spend (FY 2025) – R16,3 million 3 Committed to sustainable practices and environmental stewardship 10
Slide 11: Afrimatters success story
Afrimatters success story When you grow, we grow My name is Sipho Motlhoki, and I currently serve as a My career with Afrimat officially began in 2017 through the Maintenance Engineer based in Lovedale, Lichtenburg. My roots Afrimat Graduate Development Program (AGDP) at Glen trace back to Luka, a s
Slide 12: Key people metrics
Key people metrics 867 955 new 83 bursaries Wellness 3 828 employees training days (FY ‘25) employees (FY’25) awarded to staff AfriCare Absenteeism (FY’25) Attrition (FY’25) Headcount per province 1200 5.0% 14.0% 979 4.5% 4.3% 12.4% 1000 4.0% 12.0% 11.2% 805 3.5% 10.0% 9.7% 800 10.0% 3.0% 7.8% 8.1%
Slide 13: Headcount
FY2025 Headcount movement Mar 2024 - Feb 2025 Increase Decrease Total 7 000 6 000 1 002 - 192 - 138 5 000 898 - 184 - 51 Headcount 4 000 955 3 828 -1 336 -9 -8 - 31 3 000 2 922 2 000 1 000 0 Staff movement EXLF – Ex-Lafarge 13
Slide 14: People management
People management Learning and development - key metrics Financial information Description FY 2025 FY 2024 Percentage spend Total cost for L&D R46m R34m Core Skills Statutory Strategic SD cost as % payroll 4.0% 4.5% Statistical information 36% 48% Description FY 2025 FY 2024 Total interventions 9 64
Slide 15: Health and Safety LTIFR, MTI, TRIFR
Health and Safety LTIFR, MTI, TRIFR • LTIFR – Lost Time Injury Frequency Rate | MTI – Medical Treatment Incident | TRIFR – Total Recordable Injury Frequency Rate 15
Slide 16: ASPASA audits
ASPASA audits Awards 2024 ▪ Afrimat Qwa-Qwa Top ISHE performer ▪ Afrimat Qwa-Qwa consistent showplace 5 years or more ▪ Afrimat Tongaat – Exceptional community support and individual recognition to Sakhile Dlamini, Health and Safety Representative ▪ Afrimat Mining Services (Blasting) - Hendrik Goose
Slide 17: Mineral resources
Mineral resources Overview of rights and permits Mining rights Mining permits Total 63 Mining permits – 3 • Mining – 10 MRs • Construction Materials – 53 MRs • Active MRs – 51 • Non-active - 12 Prospecting rights Mothballed / care and maintenance – 8 Prospecting right – 1 Not operational – 2 Applica
Slide 18: Community relations
Community relations Risk matrix Excellent relationships with the communities Severity surrounding our mining operations and production plants Probability 18
Slide 19: Community relations
Community relations Corporate Social Investment Location Project Project details Beneficiaries Vryheid – KZN Amakhwatha Primary • In partnership with the Department of Basic >1000 learners School Library Education (DBE) • Afrimat constructed a new school library • DBE to resource the library • Proje
Slide 20: Community relations
Community relations Taletso Resource Centre TVET College 20
Slide 21: Climate change management
Climate change management Total greenhouse emissions per scope Scope 2025 tCo2e 2025 tCo2e 2024 tCo2e Increase / Increase / (incl. ex- (excl. ex- (decrease) from (decrease) from Lafarge) Lafarge) 2024 (incl. ex- 2024 (excl. ex- Lafarge) Lafarge) Total scope 1 721 533 154 216 127 915 464.07% 20.56% T
Slide 22: Water management
Water management Consumption 2,500,000 2,000,000 Cubic metres 1,500,000 1,000,000 500,000 0 Group Bulk Comm Industrial Min Construction Mat Cement Abstraction (m³) 22
Slide 23: Waste management
Waste management General Waste (Tons) Used Oil Collected (L) 1,800 120,000 1,600 100,000 1,400 1,200 80,000 1,000 60,000 800 600 40,000 400 20,000 200 0 0 Group Bulk Comm Industrial Min Construction Cement Group Bulk Comm Industrial Min Construction Cement Mat Mat 23
Slide 24: Biodiversity
Biodiversity Rehabilitation and alien clearing Rehabilitation vs alien clearing 200 180 160 140 120 100 Ha 80 60 40 20 0 Group Bulk Comm Industrial Min Construction Mat Cement Rehabilitation (Ha) Alien Clearing (Ha) 24
Slide 25: Financial outcomes
04. FINANCIAL OUTCOMES CECERECECEE REC CLCLECECELE
Slide 26: Financial summary
Financial summary Down 4,7% to Up 36,7% to R8,3 billion 72,3 cents 15 cents 2 862 cents Group revenue HEPS Net asset value Final dividend 7,3% 48,9% 5,7% Return on net Net debt:equity ratio Operating profit margin operating assets 26
Slide 27: Revenue and operating profit
Revenue and operating profit Revenue (R’000) Operating profit (R’000) 1,200,000 9,000,000 1,100,000 1,000,000 8,000,000 900,000 526,111 618,314 7,000,000 800,000 4,214,415 449,357 6,000,000 700,000 533,183 5,000,000 600,000 3,239,606 500,000 2,312,980 2,258,468 4,000,000 185,102 400,000 1,558,629 2,
Slide 28: Operating profit margin
Operating profit margin Operating profit margin (%) FY2025 FY2024 Construction Materials 2,2% 12,4% Aggregates 10,8% 12,4% Cement (28,2%) - Industrial Minerals 10,2% 2,5% Bulk Commodities 10,1% 32,4% Iron ore 11,9% 35,7% Anthracite 5,9% 22,6% Future Material and Metals (51,4%) (41,1%) Overall 5,7% 1
Slide 29: Headline earnings per share
Headline earnings per share HEPS (full year) 700.0 600.0 567.3 542.9 500.0 457.6 441.7 Cents per share 400.0 347.7 300.0 200.0 100.0 72.3 0.0 2020 2021 2022 2023 2024 2025 Effective tax rate FY2025 62,4% (FY2024: 29,2%) 29
Slide 30: Cash from operations
Cash from operations Net cash from operating activities (full year) Improvement in cash generation in 2HY2025 1,400,000 1,200,000 1,000,000 659,509 800,000 R’000 1,237,005 767,580 736,555 600,000 987,319 577,496 676,810 400,000 512,127 239,754 200,000 2024 2025 - -272,373 2020 2021 2022 2023 2024 20
Slide 31: Lafarge bargain purchase impact
Lafarge bargain purchase impact ▪ At interim, a gain on bargain purchase was recognised provisionally - R262,7 million ▪ A review of the acquired assets was performed and indicators of impairment were identified, including Reflected in balance sheet continued operating losses and underperformance (p
Slide 32: Statement of financial position
Statement of financial position Assets Audited Audited R’000 % Change Feb 2025 Feb 2024 Property, plant and equipment 5 665 172 3 898 037 45,3 Intangible assets 256 029 234 728 9,1 Inventories 1 311 528 829 443 58,1 Trade and other receivables 1 169 291 773 973 51,1 Cash 301 329 504 678 (40,3) Other
Slide 33: Statement of financial position
Statement of financial position Equities and liabilities Audited Audited R’000 % Change Feb 2025 Feb 2024 Total equity 4 388 260 4 563 041 (3,8) Borrowings 1 859 267 557 125 233.7 Provisions 279 746 279 939 - Overdraft 77 828 - - Trade and other payables 1 636 569 940 777 73,9 Other liabilities / de
Slide 34: Provision for iron ore pricing
Provision for iron ore pricing Audited Audited Trade and other receivables (R’000) Feb 2025 Feb 2024 Trade receivables – net 833 426 621 238 Trade receivables at fair value through profit or loss 132 437 120 997 Provision for final price adjustment 221 (43 806) Other 203 207 75 544 Total trade and o
Slide 35: Total capital expenditure – FY2025
Total capital expenditure – FY2025 (R’000) Services R113 547 Aggregates Future Materials & R172 457 Metals R24 801 Cement R50 201 Industrial Minerals R19 778 Anthracite R259 654 Iron ore R272 947 35
Slide 36: Total capital expenditure
Total capital expenditure Capital Expenditure 2016 - Planned 2025 (R'000) Improvement capital Audited Audited 1200 000 Feb 2025 Feb 2024 1000 000 963 093 Nkomati 929 481 913 385 (mine development, including R239 m R356 m 782 446 stripping costs, etc.) 800 000 Iron Ore 600 000 *300 000 (mine developm
Slide 37: Segment information
05 SEGMENT INFORMATION A foundation of diversification
Slide 38: Deep segmental diversification
Deep segmental diversification FY2025 - Revenue contribution FY2025 - Operating profit (R’000) Construction Materials Bulk Commodities Services Anthracite 3% (2024:5%) 10% (2024: 12%) 273,448 Aggregates Iron ore 43% 168,727 24% (2024:37%) (2024: 36%) -285,428 58,759 48,574 238,092 789,048 383,458 13
Slide 39: Construction Materials
Construction Materials Revenue Operating profit and margin 5,000.0 300.0 7,2% 12,4% 2,2% 4,500.0 4,000.0 250.0 3,500.0 200.0 R’million R’million 3,000.0 2,500.0 150.0 4,552.7 273.4 2,000.0 1,500.0 100.0 1,000.0 2,213.0 129.0 1,809.0 50.0 98.0 500.0 0.0 0.0 Feb '23 Feb '24 Feb '25 Feb '23 Feb '24 Feb
Slide 40: Construction Materials: Aggregates and concrete products
Construction Materials Aggregates and concrete products ▪ Solid performance with an increase in revenue and operating profit of 60,0% and 40,2% respectively ▪ Successful integration of Lafarge quarries, fly ash and readymix batching plants ▪ Divesting from five quarries and four readymix concrete op
Slide 41: Afrimat Construction Index
Afrimat Construction Index Q4 2024 130 ACI 4Q average 120 110 Index: Q1 2011=100 100 90 80 70 60 41
Slide 42: Sales index: Cement
Sales index Cement ▪ Baseline for sales volume is Apr 50% Take-over 2024 and bars illustrate the Sales Index [% Increase/Decrease from Baseline in April Increase/Decrease relative to this figure in percentage 40% ▪ Year end construction holiday 30% reduced volumes in Dec and Jan 46% 46% 20% 40% ▪ Hi
Slide 43: Sales - Durabuild
Sales - Durabuild (New 32.5N Product) Durabuild Sales ▪ Steady growth since 16000 launch in late November 2024 13,779 14000 13,447 12000 10000 Tonnes 8000 7,521 6000 4,856 4,012 4000 2000 968 - Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 43
Slide 44: Construction Materials: Cement
Construction Materials Cement ▪ Very well-situated assets with good quality plant and equipment ▪ Neglected by previous owner ▪ Loss incurred of R285,4 million ▪ September 2024 onwards, visible improvements from investment and maintenance spend ▪ Completion of the transition of Enterprise Resource P
Slide 45: Guidance
Guidance Business Status Actions Aggregates and ▪ Aggregates add 3 million tpa (divestiture ▪ Fully integrated Readymix assets volumes have been excluded) ▪ Fully integrated Ash ▪ Total volumes 2023 – 960 000 ▪ Turn loss-making cement operations around ▪ Total volumes 2023 – 877 000 Cement ▪ Aim for
Slide 46: Bulk commodities
Bulk commodities Revenue Operating profit and margin 3,500 $119 * $121 * $105 * 1,200 31,8% 32,4% 10,1% 3,000 1,000 2,500 746.6 19.8 168.7 829.1 800 573.7 2,000 R’million R’million 600 1,500 2,211.1 400 794.9 789.0 48.6 1,000 1,906.6 1,995.9 500 200 238.1 0 0 Feb '23 Feb '24 Feb '25 Feb '23 Feb '24
Slide 47: Bulk Commodities: International iron ore
Bulk Commodities International iron ore ▪ Export volumes 45% of total volumes ▪ Total export volumes 16.5% below allocation • Transnet logistics ▪ Blended from various sources ▪ Salene iron ore source recently added ▪ Export at Platts index prices • Initial payment with correction after three months
Slide 48: Bulk commodities: Local iron ore
Bulk commodities Local iron ore ▪ Domestic volume 55% of total volumes ▪ Domestic sales at defined price ▪ Impacted by a furnace freeze at AMSA ▪ Volumes recovered well across 2HY ▪ Remain in active discussions with AMSA ▪ Able to supply innovative raw material solutions to support its long-term sus
Slide 49: Iron ore volumes
Iron ore volumes International volumes achieved (tons) Local volumes achieved (tons) $119 * $121 * $105 * 388,984 349,568 549,908 325,785 377,352 254,656 428,504 493,184 383,924 349,084 339,648 247,748 2023 2024 2025 2023 2024 2025 HY1 HY2 HY1 HY2 * Average US$ for each respective period 49
Slide 50: Sales volumes (tons)
Sales volumes (tons) 0 100,000 150,000 200,000 50,000 Jan-22 69,531 39,159 Feb-22 58,024 45,601 Mar-22 79,987 45,942 Apr-22 81,117 46,000 May-22 69,338 0 Jun-22 69,248 31,811 Jul-22 69,117 64,809 Aug-22 69,145 65,195 Sep-22 80,563 58,287 Oct-22 56,979 25,794 Nov-22 46,378 44,124 Dec-22 23,140 38,725
Slide 51: 62% Fe Platts index price (USD)
100 120 140 160 40 60 80 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 62% FE Platts index price (USD) Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 Efficiencies in place to keep mining sustainabl
Slide 52: Lump premium (USD)
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Lump premium (USD) Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24
Slide 53: Freight rate China (USD)
Freight rate China (USD) Avg. Platts South Africa - China Capesize 30 25 20 15 10 5 0 53
Slide 54: Efficiency improvement at Nkomati
Efficiency improvement at Nkomati Tons moved vs Rand per Ton Proven Results 1200000 R45.00 • Relentless OE Focus: Weekly performance R40.00 huddles align all stakeholders on measurable 1000000 R35.00 wins. 800000 R30.00 • Proven Results: Indexed graphs show sustained, R25.00 step-change improvements
Slide 55: Bulk Commodities: Anthracite
Bulk Commodities Anthracite ▪ Underground mining operations relocated to safer area ▪ No more housing relocations are expected this year ▪ Results improved towards end of reporting period ▪ No anthracite products were exported in latter half of financial year due to closure of Mozambique border ▪ Bo
Slide 56: Industrial Minerals
Industrial Minerals Revenue Operating profit and margin 580.0 70.0 8,9% 2,5% 10,2% 560.0 60.0 540.0 50.0 520.0 R’million R’million 500.0 40.0 480.0 575.1 554.0 555.0 30.0 58.7 460.0 49.0 20.0 440.0 420.0 10.0 14.0 400.0 0.0 Feb '23 Feb '24 Feb '25 Feb '23 Feb '24 Feb '25 ▪ Revenue increased by 3,7%
Slide 57: Future Materials and Metals: Glenover strategic rationale
Future Materials and Metals Glenover strategic rationale ▪ Good inherent Rare Earth (REE) and Phosphate qualities 1. Total Rare Earth Oxide (TREO) approximately 2.2%: i. 29% Neodymium and Praseodymium ii. 1% Dysprosium and Terbium iii. 3.7% Samarium (Utilised in Samarium Cobalt magnets) 2. Phosphate
Slide 58: Future Materials and Metals: Glenover overview
Future Materials and Metals Glenover overview ▪ Phosphates Current Status a. Constructed and ramping up Phosphate Concentrate manufacturing plant b. Constructed and ramping up SSP fertilizer manufacturing plant ▪ Rare Earth Current Status a. Completed laboratory scale test-work i. Produced good qual
Slide 59: Future outlook
05 FUTURE OUTLOOK An increase in volumes and bolt-on acquisition opportunities
Slide 60: Progress, prospects and priorities
Progress, prospects and priorities ▪ Unlock the tremendous value of the Lafarge acquisition ▪ Focus on eradicating losses and optimisation of cement plants ▪ Enhance operating margins in Construction Materials aggregates business through efficiency projects ▪ Execute on optimisation of Life of Mine
Slide 61: Core message
Core message 1 2 3 “Lafarge” acquisition Challenges across Strategically successfully the year dealt with in positioned for long integrated meaningful way term sustainability 61
Slide 62: Investor Relations
Investor Relations Andries van Heerden Chief Executive Officer 021 917 8853 Vanessa Rech Keyter Rech Investor Solutions vrech@kris.co.za 083 307 5600 62