Slide 1: Financial Results for the Year Ended 31 December 2023
Financial Results For The Year Ended 31 December 2023 We Are One AECI, for a Better World
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: Presentation Overview
Presentation Overview 01 Welcome 02 Group performance overview 03 Group financial performance 04 Segment review 05 Strategy update and outlook 06 Q&A We Are One AECI, for a Better World
Slide 4: Group Performance Overview
Group Performance Overview We Are One AECI, for a Better World
Slide 5: ESG: Progressive Year Towards Achieving 2025 Goals
ESG: Progressive Year Towards Achieving 2025 Goals ▪ Two ▪ Twofatalities fatalitiesininearly early2023 2023 Potable water – consumption ▼ ▪ Board ▪ BoardandandExecutive ExecutiveCommittee Committeefemalefemale 2023: 1 678k m³ representation representationexceed exceed40%40%target target (6%) 2022: 1
Slide 6: Our Business Landscape
Our Business Landscape Macroeconomic Landscape Geopolitical Landscape ▪ Growth | Slight improvement expected ▪ Ukraine | Commodity price volatility ▪ Inflation expected to gradually ease ▪ Gaza and Red Sea | Supply chain interruptions ▪ Interest rates expected to taper, but stay elevated ▪ Russia an
Slide 7: Results Highlights
Results Highlights AECI Mining Delivers Growth ▪ AECI Mining achieves all time record EBIT and FCF* ▪ Positive cash generated from operations up 4.3% to R 4 004 million ▪ Working capital at 15% of revenue, down from 19% in 2022 ▪ Gearing at 35%, down from 45% in 2022 ▪ Correction of historical under
Slide 8: Group Financial Performance
Group Financial Performance We Are One AECI, for a Better World
Slide 9: Financial results: AECI Mining Drives Strong Group Performance
Financial results: AECI Mining Drives Strong Group Performance HIGHLIGHTS LOWLIGHTS ▪ Revenue growth underpinned by AECI Mining ▪ Managed businesses remain a challenge and have management ▪ Core business revenue of R30.6 billion (2022: R29.4 billion) and focus EBITDA of R3.5 billion (2022: R3.2 bill
Slide 10: Balance Sheet Optimisation Focus Delivers Results
Balance Sheet Optimisation Focus Delivers Results ▪ Reduced net debt by R1.0 billion ▪ Working capital managed down to 15% and within target range ▪ Successful repatriation of cash from foreign subsidiaries ▪ Gearing ratio declined to 35% (2022: 45%) ▪ Dividend yield of 2% within guidance Working ca
Slide 11: Focused Working Capital Management Yields Results And In line With Guidance
Focused Working Capital Management Yields Results And In line With Guidance Highlights Focus continues to deliver sustainable working capital ▪ Inventory decrease due to stringent volume management ▪ Balance sheet optimisation workstream ▪ Slight decrease in accounts receivable collection days ▪ Ana
Slide 12: Net Debt Reduces By R1 Billion
Net Debt Reduces By R1 Billion ▪ Gearing ratio declined to 35% and within target ▪ Working capital turnaround of R1,0 billion from prior year due to improved inventory turnover and accounts receivable collections ▪ Focus remains to drive sustainable free cash flow enhancement ▪ Operationalise capita
Slide 13: Capex Investment To Support Improved Efficiencies
Capex Investment To Support Improved Efficiencies Rigid management of growth capital expenditure ▪ Maintenance capital expenditure target - 0.8x – 1.2x of depreciation ▪ Historical underspend on maintenance capex being corrected R1 552m R1 303m R833m 33% R777m 61% R632m 19% 25% 32% 67% 81% 39% 68% 7
Slide 14: Successful Debt Refinancing Programme
Successful Debt Refinancing Programme ▪ Completed a competitive term refinancing ▪ Sufficient covenant headroom at end December 2023 ▪ Debt capital market public auction and loan syndication ▪ Undrawn bank facilities of c.R3.7 billion available (2022: R2.4 billion), in addition to the cash on hand o
Slide 15: Finance Priorities
Finance Priorities 01 02 03 04 05 Operating Model And One World Program Balance Sheet Procurement Governance, Risk And Structure One Source Of Truth Optimisation Excellence Compliance INORGANIC Increase Increase EBITDA GROWTH Free Cashflow #3 global market Working Capital And position in Mining Debt
Slide 16: Segment Review
Segment Review We Are One AECI, for a Better World
Slide 17: Ammonia Price Trend
Ammonia Price Trend EAST/WEST GAP IN AMMONIA PRICES (USD/T) ▪ Ammonia price influences revenue ▪ BUT does not influence profits, FY2021 FY2022 FY2023 price change pass through formula in agreements Gross margin/ton Gross margin/ton R2 100 m – R2 200 m R2 800 m – R2 900 m Average GM%: 22% Average GM%
Slide 18: AECI MINING: All-time Record EBIT
AECI MINING: All-time Record EBIT ▪ Continued focus on internationalisation Revenue ▲ EBITDA ▲ ▪ Continued growth in electronic detonator 2023: 2023: sales volumes R19 620m R2 617m ▪ Mining explosives growth due to market 8% 12% share gains outside South Africa 2022: 2022 R18 096m R2 342m ▪ In South
Slide 19: AECI AGRIHEALTH: Good Revenue Growth With Disappointing Profit Performance
AECI AGRIHEALTH: Good Revenue Growth With Disappointing Profit Performance ▪ Revenue up on higher sales volumes Revenue ▲ EBITDA ▼ ▪ South Africa impacted by oversupply and 2023: 2023: R7 618m R59m soft prices 8% (84%) 2022: 2022 ▪ EBITDA impacted by R7 067m R358m ▪ AECI Schirm loss ▪ Malawi kwacha
Slide 20: AECI CHEMICALS: Mixed Performance But Strong Cash Generation
AECI CHEMICALS: Mixed Performance But Strong Cash Generation, Supporting The Group ▪ Revenue down Revenue ▼ EBITDA ▼ 2023: 2023: ▪ Lower demand R8 159m R738m ▪ Pricing pressure (4%) 2022: (4%) 2022 ▪ Impacted by SA macro-economic R8 529m R767m environment and declining industry ▪ Good margin managem
Slide 21: AECI WATER: Performance Dragged Down By Public Water Business
AECI WATER: Performance Dragged Down By Public Water Business And Once Off Costs Revenue ▼ EBITDA ▼ ▪ Public water impacted by 2023: 2023: R2 009m R185m ▪ Low export sales volumes 0% 2022: (28%) 2022 ▪ Once off costs R2 018m R256m ▪ Drop in key raw material prices in public water results in margin p
Slide 22: Strategy Update And Outlook
Strategy Update And Outlook We Are One AECI, for a Better World
Slide 23: ATTAIN Our Strategy
Our Strategy PURPOSE WE ARE ONE AECI, FOR A BETTER WORLD Double profitability of the core business (Mining and Chemicals) by 2026 ATTAIN AMBITION a global market Attain a global market position in Mining of #3 by 2030 position of A high- performance Drive operational culture Deliver step Optimise po
Slide 24: Restructuring the Group to Create A Platform For Growth
Restructuring the Group to Create A Platform For Growth APPROACHING 2026 POST- 2026 Building the base for value delivery through a high-performance culture, operations excellence and portfolio Future opportunities through a optimisation disciplined approach 01 02 03 04 05 CULTURE PEOPLE PORTFOLIO PE
Slide 25: Managed Businesses For Disposal
25 Managed Businesses For Disposal What We Have Done TO DATE 1 M&A team established ON TRACK to Advisors and investment banks deliver in 2 appointed 18 MONTHS Good first initial interest on all 3 businesses Divestment roadmap developed 4 5 Processes initiated We Are One AECI, for a Better World
Slide 26: Strategy Execution Initiated, Heightened Focus And Discipline
Strategy Execution Initiated, Heightened Focus And Discipline To Enable Target Achievement Strategic Deliverables To date Status Implement Operating Model Executive and Senior Management Structure Rest of Organization Structure Culture & Change Initiate a new way for ONE AECI Management KEY WORK STR
Slide 27: Performance Overview: Delivered On Commitments Made
Performance Overview: Delivered On Commitments Made Actual Actual Targets Category KPI 2022 2023 2026 EBITDA (Rm) 3 570 3 683 5 600 to 6 300 ▪ Capital allocation framework in place, ambition targets Operational EBITDA margin (%) 10.0% 9.8% 13% to 15% achieved Free Cash Flow ▪ Net working capital % w
Slide 28: Group Performance Outlook For 2024
Group Performance Outlook For 2024 AECI Mining ▪ Grow internationally with focus on Asia Pacific, expansion in Latin America and entry into North America ▪ Progress plans to reduce dependency on South Africa Ammonia supply ▪ Drive innovation and digitilisation AECI Chemicals ▪ Performance tied to th
Slide 29: Thank you
Thank you We Are One AECI, for a Better World
Slide 30: Investor Relations
Investor Relations Zanele Salman +27 66 473 8878 zanele.salman@aeciworld.com aeciinvestorrelations@aeciworld.com We Are One AECI, for a Better World
Slide 31: We Are One AECI, for a Better World
We Are One AECI, for a Better World
Slide 32: Summarised Statement Of Profit Or Loss
Summarised Statement Of Profit Or Loss ZAR‘ million 2023 2022 Change Revenue 37 500 35 583 1 917 Net operating costs (34 929) (33 536) (1 393) EBIT 2 571 2 047 524 EBIT % 7% 6% 1 Net finance costs (513) (314) (199) Share of profit of equity-accounted investees, net of taxation 39 26 13 Profit before
Slide 33: Thank you
Thank you We Are One AECI, for a Better World