Slide 1: RMB Morgan Stanley Investor Presentation
WE ARE ONE AECI, FOR A BETTER WORLD RMB Morgan Stanley INVESTOR PRESENTATION
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: AECI is a global leader in mining services and chemicals since 1924
AECI is a global leader in mining services and chemicals since 1924 Our geographic reach KEY FINANCIAL DATA FY23 GROUP Revenue EBITDA EBIT FCF R37 500m R3 683m R2 571m R2 415m Share price Market Cap P/E Ratio EV/EBITDA R104 R11bn 13.43 4.72 KEY ESG DATA FY23 TRIR Major or serious Female 0.35 environ
Slide 4: Our core business: Streamlined and focused on growth markets
OUR CORE BUSINESS: Streamlined and focused on growth markets Our business segments Geography Diverse commodities 13% 22% % Core business % Core business Revenue % by 22% EBITDA EBITDA mineral mined 65% 78% ▪ AECI Mining ▪ South Africa ▪ PGMs ▪ Iron Ore ▪ AECI Chemicals ▪ The rest of the African cont
Slide 5: AECI's diverse commodity and geographic portfolio creates resilience
AECI’s diverse commodity and geographic portfolio creates resilience Mining industry market Global commodity prices Our commodity portfolio year-on-year June 2024 YTD June 2024 Global 6% Gold 19% Asia Pacific 6% Copper 14% Uranium 2% Other PGMs 15% Africa 5% PGMs (5%) 17% Diamond 4% South Africa (9%
Slide 6: A new management team with diverse skills delivering the strategy
A new management team with diverse skills delivering the strategy CHERYL SINGH ROCHELLE GABRIELS Group Company Secretary Group CFO and Executive Director RAFAEL FERNANDES and General Counsel Chief Transformation Officer DEAN MURRAY KHABONINA RAMOUPI DENVOR Executive Vice President Group Chief People
Slide 7: AECI corporate strategy launched in November 2023
AECI corporate strategy launched in November 2023 Double EBITDA by 2026 based on 2022 FY results AMBITION Attain a global market position in Mining of #3 by 2030 based on EBITDA ATTAIN a global market A high-performance Optimise portfolio Drive operational Globalisation position of culture underpinn
Slide 8: Delivering on our 2026 ambition | Our strategic pillars
Delivering on our 2026 ambition | Our strategic pillars APPROACHING 2026: Building the base for value delivery through a high- performance culture, operations excellence and portfolio optimisation 2026 strategic ambition: Double EBITDA of the core business ▪ Focus on the core business ▪ Operational,
Slide 9: Delivering on our 2026 ambition | Driving operational and functional excellence
Delivering on our 2026 ambition | Driving operational and functional excellence Building towards DOUBLING OUR CORE BUSINESS PROFITABILITY IN 2026 UNLOCK VALUE THROUGH R0.8bn R5.6bn – R6.3bn ▪ Streamlining manufacturing footprint ▪ Improving plant productivity R2.4bn ▪ Driving strategic procurement ▪
Slide 10: Delivering on our 2026 ambition | Value unlock on track
Delivering on our 2026 ambition | Value unlock on track Target R2.4 billion Progress as of 30 June 2024 ▪ Tracking on average of global benchmarks 2026 2026 ▪ Transformation investments frontloaded 36 months ▪ 63% of 2024 investment in H1-2024 ▪ 40% of total investment cost in H1-2024 2025 2025 FY 2
Slide 11: Divestiture from non-core assets for value creation
Divesture from non-core assets for value creation Expected proceeds of R3bn – R4bn DELIVERY TIMELINE PROGRESS ON DIVESTMENTS ANNOUNCED Nov 2023 Animal Health EXPECTED SIGNING STARTED Q3 2024 Feb 2024 EXPECTED SIGNINGS EXPECTED SIGNING MANAGED BUSINESSES* Nov 24 – June 25 Q4 2024 Animal Health Food &
Slide 12: AECI Core Business
AECI Core Business OUR SERVICE OFFERING BULK INITIATING MINING DIGITAL EXOPLOSIVES SYSTEMS CHEMICALS SOLUTIONS REGIONS AFRICA APAC LATIN AMERICA EUROPE NORTH AMERICA DEFEND #1 GROW TO #3 RAMPING UP ENTERED PREPARING
Slide 13: Delivering on our internationalisation growth strategy
Delivering on our internationalisation growth strategy AMMONIUM NITRATE APAC GROWTH LATAM EUROPE SUPPLY CHAIN DIGITALISATION Lihir Growth Wolfenbüttel Creating supply chain Targeted growth Targeted growth in Mining Chemicals Extending service resilience in APAC LATAM internationalisation offering
Slide 14: Balance sheet optimisation | Maintaining financial strength
Balance sheet optimisation | Maintaining financial strength GEARING (%) NET WORKING CAPITAL (%) 25% 47% 22% Working capital 50% 45% 44% 45% 41% 19% 19% 20% 18% 40% 35% 15% 35% 15% 30% Freeing up cash to 25% 20% 10% drive efficiency and Optimise gearing 15% 5% productivity 10% 5% 0% 0% 30-Jun-22 31-D
Slide 15: Disciplined capital allocation enabling strategy execution
Disciplined capital allocation enabling strategy execution Solid free cashflow generation in FY23 DISCIPLINED CAPITAL ▪ AECI Mining generated R2 059 million ALLOCATION FRAMEWORK ▪ AECI Chemicals generated R938 million ▪ Partially offset by outflows in managed businesses Free Cash Flow (FCF) Capex in
Slide 16: We are on track to achieving our strategic targets
We are on track to achieving our strategic targets Baseline (Actual) Actual Full Year Outlook Targets Category KPI 2022 2023 2024 2026 EBITDA (Rm) 3 570 3 683 In line with 2023 5 600 to 6 300 EBITDA margin (%) 10.0% 9.8% In line with 2023 13% to 15% Operational Free Cash Flow conversion ratio (15%)
Slide 17: Thank you
WE ARE ONE AECI, FOR A BETTER WORLD Thank you