Afrimat Limited · JSE:AFT

Afrimat — JSE webinar 25 August 2021

30 slides from Afrimat's conference presentation, Aug 25, 2021

  1. Slide 1: Consistently Delivering: JSE webinar

    CONSISTENTLY DELIVERING JSE webinar 25 August 2021

  2. Slide 2: What differentiates Afrimat

    2 What differentiates Afrimat Competitive advantage from:  Company culture  Geographic location  Diversification strategy  Unique metallurgy  Financial discipline  Structural cost advantage Primarily focused on mid-tier mining

  3. Slide 3: Company culture

    3 Company culture  Good people in their right positions  Living our values  Interdependent teamwork  Track record of efficient execution  Highly innovative and entrepreneurial Excellence with integrity

  4. Slide 4: Segmental makeup

    4 Segmental makeup Construction Materials Industrial Minerals Bulk commodities Aggregates Limestone Iron ore Contract crushing, drilling and blasting Dolomite Anthracite Concrete products Silica Readymix

  5. Slide 5: Balanced portfolio at work

    5 Balanced portfolio at work 31% Revenue 43% 43% 2021 2020 52% 17% 14% Construction Materials Industrial Minerals 12% Bulk Commodities 6% 31% Operating profit 2021 53% 2020 82% 16%

  6. Slide 6: Rationale for diversified structure

    6 Rationale for diversified structure  Good blend of locally and internationally priced commodities  Exposure to different currencies  Exposure to different economic cycles  Similar operational skills  Smooth growth for more than a decade CAGR of PAT at 22% (February 2009 – February 2021)  Cre

  7. Slide 7: What conscious diversification is delivering

    WHAT CONSCIOUS DIVERSIFICATION IS DELIVERING

  8. Slide 8: Growth through diversification

    8 Growth through diversification Profit history with and without acquisitions 450 400 350 Glen Douglas 300 Clinker 250 Cents Infrasors 200 Cape Lime 150 100 Demaneng 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Headline earnings per share Reality without strategic acquisitio

  9. Slide 9: Financial highlights (as at FY Feb 2021)

    9 Financial highlights (as at FY Feb 2021) 47,5% 24,0% 27,0% 11,8% Operating profit increased HEPS increased to 441,7 Group revenue increased Operating profit margin to R886,3 million cents to R3,7 billion 112,0 cents 34,0% 3,8% Return on net operating Final dividend Net debt:equity ratio assets

  10. Slide 10: Financial scorecard (as at FY Feb 2021)

    10 Financial scorecard (as at FY Feb 2021) Revenue (R’000) Operating profit (R’000) 1 000 000 4 000 000 900 000 CAGR – 13,47% CAGR – 21,28% (2017 – 2021) 800 000 (2017 – 2021) 3 500 000 700 000 3 000 000 600 000 2 500 000 500 000 886 291 3 693 759 2 000 000 3 304 376 400 000 2 966 399 600 952 2 380

  11. Slide 11: Financial scorecard (as at FY Feb 2021)

    11 Financial scorecard (as at FY Feb 2021) Net cash from operation HEPS (cps) 500 activities (R’000) 900 000 450 CAGR - 22,46% (2017 – 2021) 800 000 CAGR – 17,26% 767 580 400 (2017 – 2021) 700 000 676 810 350 600 000 300 500 000 250 441.7 410 484 200 400 000 347.7 326 536 150 300 000 234.1 200 960 1

  12. Slide 12: Investment case

    12 Investment case  When assessing Afrimat as a potential investment opportunity it is also important to note the Group’s key strengths, which include the following: Exceptionally experienced Cash generation | free cash flow executive and operational focus management Track record of excellent Opera

  13. Slide 13: Operational overview

    OPERATIONAL OVERVIEW

  14. Slide 14: Bulk commodities

    14 Bulk commodities  Iron ore  Demaneng mine  Jenkins mine  Anthracite  Nkomati mine Nkomati operations Demaneng iron ore Jenkins office

  15. Slide 15: Sales Volumes (Tons)

    Sales Volumes (Tons) 100 000 0 20 000 40 000 60 000 80 000 Aug-17 22 715 Sep-17 28 629 Oct-17 27 088 Nov-17 30 643 Dec-17 30 282 Jan-18 45 743 Feb-18 45 392 Mar-18 45 225 Apr-18 45 758 May-18 57 172 Jun-18 45 705 19 536 Jul-18 45 540 12 896 Aug-18 56 535 18 746 Sep-18 34 264 19 131 Oct-18 45 796 19

  16. Slide 16: Jenkins iron ore mine

    16 Jenkins iron ore mine  Currently busy with ramp-up Volumes expected:  Mining and water use license approved • Y1 500,000 tonnes • Y2 1,250,000 tonnes  Expect contribution in second half of 2022 Capex:  Product from mine for domestic market • R110 million  20-year LoM The future: Driehoekspan

  17. Slide 17: Nkomati anthracite mine

    17 Nkomati anthracite mine  All shares in mine now owned by Afrimat  Non-core UCP (Unicorn Capital Partners) Volumes expected: assets sold, netting R45 million • F2022 225 000 tonnes  Undertook comprehensive LoM exercise, • Steady state 540 000 tonnes resulting in better understanding of deposit

  18. Slide 18: Industrial Minerals

    18 Industrial Minerals  Lime Cape Lime, main factory  Metallurgical dolomite

  19. Slide 19: Industrial Minerals: status

    19 Industrial Minerals : status  Good recovery after Covid-19 lockdown last year  Volumes currently strong  Strong demand from steelmakers, but expect slow November and December  Good quality business  Very strong team  Potential for small but exciting acquisitions

  20. Slide 20: Construction Materials

    20 Construction Materials  Aggregates  Bricks & blocks  Readymix concrete

  21. Slide 21: Afrimat Construction Index – Q1 2021

    21 Afrimat Construction Index – Q1 2021

  22. Slide 22: Construction Materials: current status

    22 Construction Materials : current status  Volumes made V-shaped recovery from Covid-19 lockdown  Current volumes at pre-Covid levels  Government infrastructure plans:  Good prospects for the industry  Has so far had limited impact on sales volumes  Exciting strategic opportunities

  23. Slide 23: Gravenhage (manganese)

    Lu Oo <x a = > <x a O (manganese)

  24. Slide 24: Gravenhage manganese mining right

    24 Gravenhage manganese mining right  Adding manganese to portfolio  >20-year LoM and high-quality resource “Economic viability and profitability are one thing, but Afrimat is equally  Additional foreign currency exposure passionate about the longer-term  Possible synergies with Demaneng contrib

  25. Slide 25: Sustainability

    SUSTAINABILITY

  26. Slide 26: Human resource development

    26 Human resource development 3% Leadership and strategic development 15%  Afrimat Management Development Program 2021  AfriLead 23% 54%  StrengthsFinder  External courses – e.g. certificates, diplomas, degrees, honours, MBA 5% Bursary/study loans Training costs Skills development department cos

  27. Slide 27: Community development

    27 Community development Categorisation spend (R’000) F2021 (R'000) Skills development / job 6% 9% creation 4% 3% Art, Sports & Culture (9,2%) Basic Needs (2,9%) Education projects (50,2%) Uplifting community (28,4%) 28% Skills development (3,8%) Education Small business dev (5,7%) programmes 50% In

  28. Slide 28: The future

    THE FUTURE

  29. Slide 29: Looking ahead

    29 Looking ahead  Maintain excellent results from existing operations  Remain vigilant, react quickly and keep employees safe should Covid-19 resurge  Iron ore business to benefit from Jenkins iron ore mine  Nkomati expected to contribute as from H2 of F2022  Good cash flow  Execute diligently

  30. Slide 30: Contact details

    30 Contact details Thank you for your attendance and participation For any further investor relations questions please contact: Andries van Heerden | CEO 021 917 8853 Vanessa Rech | Keyter Rech Investor Solutions 087 351 3814 www.afrimat.co.za Virtual tour - https://www.youtube.com/watch?v=XxNWX0hjV

Afrimat — JSE webinar 25 August 2021 on 6ix