Slide 1: Results Presentation for the Half Year Ended 30 June 2023
RESULTS PRESENTATION FOR THE HALF YEAR ENDED 30 JUNE 2023 26 JULY 2023
Slide 2: Cautionary statement
Cautionary statement This document has been prepared and issued by and is the sole responsibility of the management of AECI Ltd (the Company) and its subsidiaries (the Group). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer
Slide 3: Agenda
AGENDA 01 Welcome 02 Business results 03 Financial performance 04 Segment review 05 Outlook and strategic priorities 06 Questions and answers
Slide 4: Business Results
BUSINESS RESULTS
Slide 5: Safety
Business results Financial performance Segment review Outlook and strategic priorities Q&A Safety Disappointing safety performance Fatalities 2 Life altering injuries 1 High potential incidents 1 Target 0 Target 0 Target 0 2022 0 2022 0 2022 0 Committed to ZERO HARM Focused safety initiative • Accou
Slide 6: ESG
Business results Financial performance Segment review Outlook and strategic priorities Q&A ESG On track against our 2025 sustainability targets Achieved 75% of target achieved 2025 target: 40% • Key focus area for management and the Board Gender (senior, middle and junior management) 47% of target a
Slide 7: Resilient underlying businesses
Business results Financial performance Segment review Outlook and strategic priorities Q&A Resilient underlying businesses Operational highlights AECI Group Operational Process to Solid results AECI Schirm Growth capex refinance the initiatives and driven by strong Germany spend Group’s long- progra
Slide 8: AECI Schirm update
Business results Financial performance Segment review Outlook and strategic priorities Q&A AECI Schirm update Germany: turnaround project progressing, USA: capex completed Rm H1 2023 H1 2022 AECI Schirm Germany PPA PPA and EBIT impacted by Germany USA Total Germany USA Total and other other Severanc
Slide 9: Committed to driving B-BBEE ownership goals
Business results Financial performance Segment review Outlook and strategic priorities Q&A Committed to driving B-BBEE ownership goals AECI Employees Share Trust (EST) ▪ Implemented in 2012 ▪ On 9 February 2023, extended vesting date, EST not value accretive to beneficiaries and wound up ▪ Beneficia
Slide 10: Financial Performance
FINANCE FINANCIAL PERFORMANCE
Slide 11: Delivered record revenue, EBIT and HEPS performance
Business results Financial performance Segment review Outlook and strategic priorities Q&A Delivered record revenue, EBIT and HEPS performance Financial highlights H1 2023 Revenue EBITDA# EBIT* HEPS EPS 19% 18% 20% 5% 5% H1 2023: R18 404m H1 2023: R1 826m H1 2023: R1 269m H1 2023: 603c H1 2023: 600c
Slide 12: Price increase primary driver of elevated inventory levels
Business results Financial performance Segment review Outlook and strategic priorities Q&A Price increase primary driver of elevated inventory levels Working capital and days cover Working capital percentage of 22% 19% 19% revenue Working capital Rm and days 97 84 79 68 66 67 65 62 54 6 518 6 425 6
Slide 13: Gearing within expected range
Business results Financial performance Segment review Outlook and strategic priorities Q&A Gearing within expected range Net debt, gearing and cash movements Rm Gearing 45% Gearing 47% 2 063 (242) (460) (351) (638) (5 345) (625) (142) (5 741) Net debt Net cash Net Tax paid Working Net Dividends Othe
Slide 14: Net debt increased – still well within covenant levels
Business results Financial performance Segment review Outlook and strategic priorities Q&A Net debt increased – still well within covenant levels Debt maturity profile and covenants Up to Payment profile (Rm) 2023 2028 Total DMTN auction 520 - 520 300 300 Group loan covenants Dec 2022 Jun 2023 DMTN
Slide 15: Segment Review
i afb SEGMENT REVIEW
Slide 16: Mining
MINING
Slide 17: Strong market share gains, export growth drive performance
Business results Financial performance Segment review Outlook and strategic priorities Q&A Strong market share gains, export growth drive performance AECI Mining ▪ Record H1 2023 performance, continued momentum from H2 2022 REVENUE BY MINERAL MINED (%) ▪ Volumes and revenue up ▪ Supported by strong
Slide 18: A leading international player poised for expansion
Business results Financial performance Segment review Outlook and strategic priorities Q&A A leading international player poised for expansion AECI Mining: Outlook Good pipeline of 3 significant 5-year Mining chemicals new tender contracts concluded significant contracts opportunities in Australia r
Slide 19: Water
WATER
Slide 20: Continued recovery in H1 2023
Business results Financial performance Segment review Outlook and strategic priorities Q&A Continued recovery in H1 2023 H1 2019 – H1 2023 (Rm) AECI Water ▪ Revenue up 8% (22% exports | 78% local) CAGR +11% ▪ Market expansion in Mining – Central and West Africa ▪ Increased sales to existing customer
Slide 21: Leverage technical solutions for earnings growth
Business results Financial performance Segment review Outlook and strategic priorities Q&A Leverage technical solutions for earnings growth AECI Water: Outlook Revenue expected Continued focus on Introduction of new to continue to grow ▪ Margin improvement greener products ▪ Working capital manageme
Slide 22: Chemicals
CHEMICALS
Slide 23: Challenging trading conditions, cash generated
Business results Financial performance Segment review Outlook and strategic priorities Q&A Challenging trading conditions, cash generated AECI Chemicals1 ▪ Revenue impacted by ▪ Drop in some commodity prices ▪ Lower demand in AECI Food & Beverage and AECI SANS Fibers ▪ EBIT impacted by ▪ Margin pres
Slide 24: Sluggish demand, focus on margin improvement
Business results Financial performance Segment review Outlook and strategic priorities Q&A Sluggish demand, focus on margin improvement AECI Specialty Chemicals ▪ Revenue up 6%, however EBIT down 8% ▪ Good performance in the traded portfolio, margins managed ▪ Manufactured products business mainly i
Slide 25: Well positioned for growth
Business results Financial performance Segment review Outlook and strategic priorities Q&A Well positioned for growth AECI Chemicals: Outlook Strong focus on Continue to expand Ensure customer working capital product and service retention and margin release and cash offering, mainly new management g
Slide 26: Agri Health
AGRI HEALTH
Slide 27: Solid performance, optimistic view for the short term
Business results Financial performance Segment review Outlook and strategic priorities Q&A Solid performance, optimistic view for the short term AECI Agri Health¹ AECI Plant Health and AECI Animal Health ▪ Revenue and EBIT up 6% and 5%, respectively ▪ Robust Q1 2023 sales set the foundation ▪ Manufa
Slide 28: Towards delivering a sustainable performance
Business results Financial performance Segment review Outlook and strategic priorities Q&A Towards delivering a sustainable performance AECI Agri Health: Outlook Growth in International Focus on manufactured product trials and ▪ Margins products focused on develop footprint softer/greener ▪ Cost man
Slide 29: Outlook and Strategic Priorities
OUTLOOK AND STRATEGIC PRIORITIES
Slide 30: Looking ahead and strategic priorities
Business results Financial performance Segment review Outlook and strategic priorities Q&A Looking ahead and strategic priorities Active management of working capital Strengthen balance sheet Deliver on AECI Schirm Strategy review 30
Slide 31: Thank you
ONE AECI, 3.0.0 % FOR A BETTER WORLD OA=CIr
Slide 32: OA=CIr
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Slide 33: Investor Relations
INVESTOR RELATIONS ZANELE SALMAN +27 11 806 8719 ZANELE.SALMAN@AECIWORLD.COM