Slide 1: Audited Summary Consolidated Financial Statements
AUDITED SUMMARY CONSOLIDATED FINANCIAL STATEMENTS for the year ended 28 February 2022
Slide 2: Core message
Core message Cape Lime, main factory Future of Afrimat Pleasing results Well established is supported by across all diversified increased overall operations portfolio of longer volumes and a life-of-mine growing product assets in place portfolio 2
Slide 3: What we do and how we do it
1 WHAT WE DO AND HOW WE DO IT
Slide 4: Afrimat: who we are
Afrimat: who we are ▪ Track record of excellence in mid-tier mining and materials supply ▪ Well diversified across different industries to ensure consistent delivery ▪ Positioning towards longer life-of-mine (LOM) assets, enhanced processes capability and even greater product diversity 4
Slide 5: Segmental makeup
Segmental makeup Construction Industrial Bulk Materials Minerals Commodities Aggregates | contract crushing, drilling Iron ore | anthracite | manganese (WIP) and blasting | concrete products | Limestone | dolomite | silica | phosphate, rare earths & vermiculite readymix (WIP) Revenue (R’000) Operati
Slide 6: Rationale for diversified structure
Rationale for diversified structure ▪ Good blend of locally and internationally priced commodities ▪ Exposure to different currencies ▪ Exposure to different economic cycles CAGR of PAT ▪ Similar operational skills 22% ▪ Smooth growth for more than a decade (Feb 2009 – Feb 2022) ▪ Allowing for longe
Slide 7: Our transition through conscious diversification
Our transition through conscious diversification Construction materials Where it all started Diversified mid-tier miner with aim of extending LOM assets Industrial minerals Became more sophisticated Iron ore Became even more sophisticated Anthracite Wider commodity diversity Bulk commodities Mangane
Slide 8: Diversified product portfolio by acquisition
Diversified product portfolio by acquisition Traditional business Glen Douglas Infrasors Cape Lime LOM 5 years 2013 Average 2006 2012 2015 Silica / sands / metallurgical Aggregates Clinker Lime dolomite Agri Lime Gravenhage Nkomati Demaneng & Coza 2021 2021 2021 2016/20 Average LOM >20 years Agricul
Slide 9: Growth through diversification
Growth through diversification Profit history with and without acquisitions 600 500 Glen Douglas Clinker Group 400 Infrasors Cents 300 Cape Lime Demaneng 200 Nkomati 100 Jenkins 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Headline earnings per share Reality without strate
Slide 10: Operational overview
2 OPERATIONAL OVERVIEW
Slide 11: Bulk Commodities
Demaneng – iron ore Bulk Commodities Jenkins – iron ore Nkomati – anthracite Excellent results supported by favourable international iron ore prices Revenue Operating profit and margin 3 000 900 34,1% 800 46,4% 2 500 700 2 000 600 R’million R’million 500 1 500 400 31,0% 820 2 409 735 1 000 300 Previ
Slide 12: Composition of Bulk Commodities (FY2022)
Composition of Bulk Commodities (FY2022) Segment contributed 52% of revenue and 74% of operating profit Revenue contribution * Operating profit (R’000) 604 821 23% 264 820 15% 62% (49 431) Demaneng Mine Nkomati Anthracite Jenkins Mine Demaneng Mine Nkomati Anthracite Mine Jenkins Mine Mine (*) 2021
Slide 13: Nkomati anthracite mine
Nkomati anthracite mine ▪ Mine is profitable ▪ Long-term sustainable LOM plan will consist of two Contributing to results? Yes pits and underground opening, requiring capital investment Targeted volumes: FY2022 – 225,000 tpa Steady state – 540,000 tpa ▪ To ensure consistent feed for the mine Volumes
Slide 14: Jenkins iron ore mine
Jenkins iron ore mine ▪ Started and ramped up to required limits that off-take is willing to support Contributing to results? Yes ▪ Ability to ramp up further, slightly ahead of contractual Targeted volumes: Y1 - 500,000 tpa volumes Y2 -1,250,000 tpa ▪ Supplying off-take according to contract Volume
Slide 15: Demaneng iron ore mine
Demaneng iron ore mine Contributing to results? ▪ Pricing in Q3 was a little lower, Q4 much Yes improvement Targeted volumes: ±870,000 tpa * ▪ Approaching end of LOM with strip ratio’s slightly Volumes achieved: higher 746 035 ▪ Still very happy with performance Average price: Dependent on a number
Slide 16: Iron ore pricing influences
Iron ore pricing influences Platts Index) 16
Slide 17: 62% FE Platts Index Price (USD)
62% FE Platts Index Price (USD) 250.00 200.00 150.00 100.00 50.00 Efficiencies in place to keep mining sustainable at this price range - 17
Slide 18: Lump premium (USD)
Lump premium (USD) 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 18
Slide 19: Freight rate China (USD)
Freight rate China (USD) Avg. Platts South Africa - China Capesize 35.00 30.00 25.00 20.00 15.00 10.00 5.00 - 19
Slide 20: Sales Volumes (Tonnes)
Sales Volumes (Tonnes) 60 000 100 000 120 000 140 000 0 20 000 40 000 80 000 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 19 208 Nov-18 45 771 19 211 Dec-18 22 41619 054 Jan-19 45 091 19 084 Iron ore sales
Slide 21: Industrial Minerals
Lime Industrial Minerals Metallurgical Dolomite Delivered returns comparable to pre-Covid-19 volumes across all regions Revenue Operating profit and margin 700 120 600 17,3% 14,9% 100 500 80 R’million R’million 400 10,8% 60 300 633 553 514 96 94 40 200 55 100 20 - - Feb '20 Feb '21 Feb '22 Feb '20 F
Slide 22: Construction Materials
Aggregates Construction Materials Bricks & blocks Readymix concrete Delivered returns comparable to pre-Covid-19 volumes across all regions Revenue Operating profit and margin 1 800 250 11,2% 11,8% 1 700 200 R’million R’million 1 600 150 6,6% 1 500 1 714 100 192 192 1 595 1 626 1 400 50 105 1 300 -
Slide 23: Afrimat Construction Index – Q4 2021
Afrimat Construction Index – Q4 2021 150 140 130 4Q average 120 Index: Q1 2011=100 110 100 90 80 70 60 23
Slide 24: New projects
3 NEW PROJECTS
Slide 25: Gravenhage manganese mining right
Gravenhage manganese mining right Manganese ▪ Enhance ferrous value chain and deepen Rand-hedge Contributing to results? No (expect revenue in FY2024) ▪ Possible synergies with Demaneng Targeted volumes: Phase 1,750,000 tpa Ramp up to 1.5m tpa ▪ First payment ($30 million) only due when all Peak fun
Slide 26: Glenover transaction overview
Phosphate Glenover Vermiculite Rare Earth Elements Transaction overview ▪ Acquired current stockpiles and subordinate vermiculite mining right, located in Limpopo, for R250 million (Phase 1) ▪ Phase 1: Vermiculite, High Grade (“HG”) Phosphate and Single Super Phosphate (“SSP”) production ▪ Afrimat r
Slide 27: Glenover
Glenover ▪ Aligned with global trends (decarbonisation, technology advancements, food security etc.) ▪ Enhance the diversification strategy Phase 1 Phase 2 ▪ Commodity/product ▪ Processing (innovation) Vermiculite ▪ Foreign currency revenue (industrial, fire protection, horticulture, Nitro-phosphate
Slide 28: Glenover targeted volumes, timelines and status
Glenover Targeted volumes, timelines and current status Vermiculite 30 000 tons per annum H2 2023 Test work and final design Phase 1 HG Phosphate 30 000 tons per annum H1 2022 In production SSP 30 000 tons per annum H1 2023 Test work and final design Nitro-Phosphate plant 30 000 tons per annum* H2 2
Slide 29: Financial review
4 FINANCIAL REVIEW
Slide 30: Core financial discipline to support growth
Core financial discipline to support growth Entrenched Surplus cash diversification Strong cash supports strategy generation acquisitions, supported by capex and prudent capital consistent allocation dividends Continuous measurement against decisions taken ▪ Opportunity > WACC = invest in growth ▪ S
Slide 31: Financial highlights
Financial highlights 23,7% 22,9% 26,7% Group revenue Operating profit HEPS increased increased to margin to 542,9 cents R4,7 billion 146,0 cents per share 33,0% 12,1% Final dividend Return on net Net debt:equity Total dividend 186,0 cents operating assets ratio (25,7% increase) 31
Slide 32: Revenue and operating profit
Revenue and operating profit Revenue (R’000) Operating profit (R’000) 1 200 000 5 000 000 1 000 000 4 500 000 526 111 4 000 000 2 258 468 800 000 3 500 000 533 183 3 000 000 2 135 130 600 000 1 584 574 1 531 549 2 500 000 282 959 1 184 592 1 196 402 2 000 000 400 000 202 669 268 483 195 504 155 895
Slide 33: Operating profit margin
Operating profit margin Operating profit margin (%) FY2022 FY2021* FY2020 Construction Materials 11,8% 6,6% 11,2% Bulk Commodities 34,1% 46,4% 31,0% Industrial Minerals 14,9% 10,8% 17,3% Overall 23,7% 24,0% 18,2% * As previously reported 33
Slide 34: Solid metrics
Solid metrics HEPS – full year Net cash from operating activities – full year 600.0 CAGR – 31,7% 1 000 000 CAGR – 47,5% 951 655 (2018 – 2022) (2018 – 2022) 215 100 500.0 900 000 800 000 767 580 400.0 700 000 676 810 Cents per share 600 000 R’000 300.0 542.9 736 555 500 000 410 484 441.7 400 000 200.
Slide 35: Measurement period adjustment
Measurement period adjustment ▪ Relates to Nkomati acquisition Previously reported Restated ▪ Comparative information for February audited audited 2021- restated Feb 2021 Feb 2021 ▪ Mainly relates to deferred tax asset Operating profit (R’000) 886 291 1 058 901 raised of R189,9 million Profit after
Slide 36: Statement of financial position - assets
Statement of financial position - assets R’000 Audited Feb 2022 Restated Audited Feb 2021 Property, plant and equipment 2 696 448 2 247 493 Intangible assets 213 335 209 785 Inventories 568 266 * 279 042 Trade and other receivables 793 343 695 936 Cash 290 633 871 060 Other assets / deferred tax 464
Slide 37: Statement of financial position – equities & liabilities
Statement of financial position – equities & liabilities R’000 Audited Feb 2022 Restated Audited Feb 2021 Total equity 3 007 200 2 431 017 Borrowings 643 826 513 901 Provisions 265 252 239 142 Overdraft 1 805 433 807 Trade and other payables 663 729 596 483 Other liabilities / deferred tax 464 485 4
Slide 38: Provision for iron ore pricing
Provision for iron ore pricing Note 11 Trade and other receivables Audited Feb 2022 Audited Feb 2021 R’000 Trade receivables – net 427 387 377 757 Trade receivables at fair value through profit or loss 142 362 212 432 Provision for final price adjustment 122 967 52 973 Other 100 627 52 774 Total tra
Slide 39: Provision for iron ore pricing (continued)
Provision for iron ore pricing (continued) Extract of forward looking variables applicable on 28 Feb 2022 Explanation: Feb Jan Dec 2022 2022 2021 Initial invoice Three- Two- One- February 2022 month month month $120 x 56 864 = $6 823 680 spot spot spot Adjustment settled in May 2022 Average actual i
Slide 40: Capital expenditure
Capital expenditure Capital Expenditure 2016 - Planned 2023 (R'000) 500 000 474 803 Capex by segment (FY 2022) 450 000 4% 400 000 293 587 273 438 350 000 24% 300 000 199 978 207 543 202 220 250 000 5% 200 000 134 521 6.4% 5.6% 131 264 4.7% 67% 150 000 5.5% 6.1% 100 000 5.4% 4.6% 50 000 Construction
Slide 41: ESG and sustainability
5 E S G AND SUSTAINABILITY
Slide 42: Sustainability and ESG
Sustainability and E S G Active community Focus on job E S G focus relations with creation, training across 45 mining investment in staff and ensuring licenses, education, youth a high standard of rehabilitation and employment and health and safety carbon neutrality infrastructure strategy Investmen
Slide 43: Project timeline example
Project timeline example 2016 2020 2021 2022 Future Demaneng mine CoZa acquisition Jenkins mine is First blasts at Doornpan is able to brought online to Drieshoekspan to contribute as life of Operating mine Jenkins assist with iron ore check quality of iron mine in other mines producing 870,000 Drie
Slide 44: Afrimat staff
Afrimat staff 2,517 employees 2,474 training days 56 bursaries 512 jobs created awarded to staff Absenteeism Attrition Staff composition 5.0% 4.3% 12.0% 11.2% 80% 68% 4.0% 10.0% 70% 10.0% 60% 7.8% 3.0% 8.0% 50% 2.3% 6.0% 40% 2.0% 6.0% 1.3% 1.4% 30% 4.0% 20% 16% 15% 1.0% 2.0% 10% 6% 0.0% 0% 2019 2020
Slide 45: Community relations
Community relations 70 sites across South Africa Education Distribution of SLP spend CSI F2021 (R’000) 4% 6% 9% 3% 28% 50% Art, Sports & Culture Basic needs Education projects Uplifting community Skills development Small business development • Sponsor math teachers’ salaries No community unrest or l
Slide 46: Community relations (continued)
Community relations (continued) Olifantshoek project FCD 46
Slide 47: Community risk matrix
Community risk matrix 1 AFRIMAT
Slide 48: Statutory relationships and compliance
Statutory relationships and compliance 3 closure certificates received Mining rights managed 128 45 supporting successful rehabilitation and administered ha Strong working relationships with Department of Mineral Resources and Energy (DMRE) and Department of Environmental Affairs (DEA) LTFR progress
Slide 49: Carbon emissions - 2022
Carbon emissions - 2022 Afrimat year 2021 Afrimat 2022 Scope Category Emission Source Variance tCO₂e tCO₂e Scope 1 Process Emissions Lime production 37713.00 46143.75 22.36% Scope 1 Mobile combustion Diesel - Equipments 40110.52 50149.66 25.03% Scope 1 Mobile combustion Petrol - Equipments 10.73 9.1
Slide 50: Carbon neutral strategy
Carbon neutral strategy 2030 - Reduce by 32% Cape Lime, main factory 114 428 30% more efficient mobile engines 50
Slide 51: The future
6 THE FUTURE
Slide 52: Looking ahead
Looking ahead ▪ Remain vigilant, react quickly and keep employees safe should Covid-19 resurge ▪ Maintain excellent results from existing operations ▪ Iron ore business to benefit from Jenkins iron ore mine and Driehoekspan ▪ Nkomati on track to slightly exceed ramp-up volumes ▪ Industrial Minerals
Slide 53: Core message
Core message Cape Lime, main factory Future of Afrimat Pleasing results Well established is supported by across all diversified increased overall operations portfolio of longer volumes and a life-of-mine growing product assets in place portfolio 53
Slide 54: Investor relations
Investor relations 14 June 2022 Investor Open Day Andries van Heerden Johannesburg & accessible via webinar CEO 021 917 8853 August 2022 Pre-close event Webinar 27 October 2022 Interim results roadshow Cape Town & accessible via webinar Vanessa Rech Keyter Rech Investor Solutions November 2022 Site