AECI LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1924/002590/06)
Share code: AFE ISIN: ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)

SUMMARISED AUDITED CONSOLIDATED FINANCIAL RESULTS AND FINAL CASH
DIVIDEND DECLARATION FOR THE YEAR ENDED 31 DECEMBER 2022

    •    Safety performance: TRIR of 0.15 (2021: 0.23)
    •    Revenue up 37% to R35 583 million
    •    EBITDA2 up 16% to R3 570 million
    •    EBIT1 flat at R2 047 million
    •    HEPS up 15% to 1 287 cents
    •    EPS down 22% to 878 cents
    •    Growth capex of R952 million (61% of total R1 552 million capex)
    •    Working capital at 19% of revenue from 18% in 2021
    •    Gearing at 45% (24% in 2021)
    •    Final cash dividend up 15% to 580 cents per share

1 Earnings before interest and taxation is defined as profit before interest, taxation and share of profit of equity-
accounted investees, net of taxation
2 Earnings before interest, taxation, depreciation and amortisation calculated as profit from operations and equity-

accounted investees plus depreciation, amortisation and impairments.
EBITDA is unaudited.


SAFETY AND SUSTAINABILITY

As at 31 December 2022, the Group’s total recordable injury rate (TRIR) was 0.15, the lowest
recorded TRIR by the Group since we started measuring. All the “zero milestones” were kept
at zero, with no major incidents across the areas of occupational and process safety,
environment or product transportation. We are well on track to achieve our sustainability
targets by 2025.

RESULTS OVERVIEW

The Group delivered solid results, with revenue up 37% to R35 583 million (2021: R26 053
million) in an environment of high inflation, subdued global growth and high commodity prices.
This pleasing performance reflects the significantly improved sales in AECI Mining, AECI
Water and AECI Agri Health on the back of increased demand. However, EBIT was flat at R2
047 million (2021: R2 052 million) as it included a significant operating loss of R228 million,
right-of-use asset and an impairment of property, plant and equipment (PPE) of R 445 million
related to the AECI Schirm Germany business.



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 R million (unless stated otherwise)
                                                2022          2021       % change
 Revenue                                       35 583        26 053         37
 EBITDA                                         3 570        3 091           16
 EBITDA margin (%)                                10           12            -2
 Depreciation and amortisation                  1 026        1 032           1
 EBIT                                           2 047        2 052           0
 EBIT margin (%)                                  6            8             -2
 Net profit after taxation                       956         1 210          -21
 Earnings per share (EPS) (cents)                878         1 125          -22
 Headline earnings per share (HEPS) (cents)     1 287        1 116           15
 Cash generated from operations                 3 840        3 289           17


HEPS, therefore, increased by 15% to 1 287 cents and EPS was down 22% to 878 cents
mainly impacted by Schirm Germany’s performance.

The Group’s cash generated from operations increased by 17% to R3 840 million (2021: R3
289 million).

Proactive actions taken by the Group to ensure security of supply to the market following
supply chain challenges and high raw material prices during the year, resulted in elevated
levels of working capital. Inventory increased to R6 780 million (2021: R4 880 million),
matched by an increase of R1 985 million (2021: R446 million) in short-term debt. Cash
available from operating activities decreased significantly to R77 million (2021: R1 467 million).

As a result, net debt for the Group increased to R5 345 million (2021: R2 760 million), which
largely explains higher net finance costs for the year. The net gearing ratio for the year was
45% (2021: 24%), as expected, given the working capital context previously explained. The
Group’s long-term covenants remain well within the target cover range of 2.5 times earnings
before interest, taxation, depreciation and amortisation (EBITDA), at 1.5 times EBITDA (2021:
0.9 times EBITDA).

Capital expenditure (capex) investment of R1 552 million (2021: R777 million) was mainly
focused on organic growth.

The net asset value per share attributable to ordinary shareholders increased by 6%, from 10
384 cents in 2021 to 11 027 cents.

The Board declared a final dividend of 580 (2021: 505) cents per share which increased the
total dividend to 774 (2021: 685) cents per share which represents a 13% growth.

SEGMENTAL REVIEW

AECI Mining achieved a record performance by growing its revenue by 51% on the back of
strong market share gains, export growth in mining chemicals and increased chemical
commodity prices. 67% (2021: 64%) of the segment’s total revenue was generated outside of
South Africa. Consequently, EBIT and EBITDA increased by 36% and 29% respectively.


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AECI Water grew its revenue by 31% supported by market share gains in exports and South
Africa as well as increased sales to existing public and industrial sector customers. Water
sustainability projects contributed 6% to revenue. EBIT was impacted by market sector sales
mix and cost impact as a result of delays in price implementations at major customers due to
contract pricing formulas.

AECI Agri Health’s revenue was up 17% to R7 067 million from R6 020 million in 2021. The
segment recorded an EBIT loss of R297 million (2021: R179 million profit), due mainly to the
impact of the AECI Schirm business performance. Excluding AECI Schirm, revenue was up
19% supported by sustained higher commodity prices and continued strong demand following
favourable climatic conditions, export sales as well as an increased mix of in-house formulated
products. EBIT increased by 19% to R306 million.

AECI Schirm USA, delivered to expectations with EBIT up 31% to R 101 million on the back
of growth in sales aligned to the continued growing demand in agrichemicals. AECI Schirm
Germany, recorded an operating loss of R228 million which triggered a right-of-use asset and
PPE impairment of R445 million. The Board approved comprehensive turnaround project is
expected to deliver commercial recovery including clearly defined milestones as well as details
associated with the required once-off costs. Notably, high priority actions have been taken and
we expect once-off costs to impact 2023 earnings. The Board expects positive earnings
contribution within 20 to 36 months.

AECI Chemicals increased revenue significantly by 32% on the back of increased demand
and high commodity prices. EBIT was negatively impacted by margin pressure in industrial
chemicals from high sulphur prices and pass through pricing at the customer, foreign
exchange impacts in the food and beverage business. Good cash was delivered by the
segment.

AECI Much Asphalt exhibited marked improvement in performance for 2022 on the back
higher sales volumes. Revenue increased by 37%, while EBIT increased by 21%.

B-BBEE EMPLOYEES SHARE TRUST (EST)

The AECI EST, set up in 2012, was expected to vest on 9 February 2022. The trust held
approximately 10 million B ordinary shares in AECI (7.7% of shares in issue) at inception.

The share price growth did not meet expectations and in November 2021, the Board approved
the extension of the EST term by an additional 12 months. An additional dividend of 50.5 cents
per share was paid to beneficiaries on 28 September 2022.

As at the extended vesting date of 9 February 2023, the share scheme was not value accretive
to beneficiaries and will therefore be wound up. The Group remains committed to driving the
Group B-BBEE ownership goals. The potential opportunity of launching a new Black
Ownership Scheme that incorporates learnings and improvements from the previous
transaction is being considered.




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FUTURE FOCUS AND PROSPECTS

Our strength is founded on our diversified product and service offering to customers across a
variety of markets and countries where a strategic footprint has been established over time.
This enables us to deliver consistent value sustainably to all stakeholders while leveraging the
peaks and troughs of market cycles. All our activities remain underpinned by our ESG
commitments and targets.

High commodity price trends are expected to continue in the short term. This together with
continued customer (new and existing) activity is expected to drive performance across
geographies. Focus on customer centricity and the expansion of profitable product and service
offering across the segments will enable customer retention and growth of sales in relevant
products and services. Continued focus on margin improvement and working capital
management initiatives to improve working capital release and cash generation.

The growth in capital invested during the year has already contributed to new revenue which
is expected to accelerate in 2023.

Following the appointment of the new Group Chief Executive, we look forward to renewed
vigour to drive the transformation journey which includes optimising returns from existing
businesses.

DIVIDEND

Declaration of final ordinary cash dividend no. 178

Notice is hereby given that on Tuesday, 28 February 2023 the Directors of AECI declared a
gross final cash dividend of 580 cents per share in respect of the financial year ended 31
December 2022. The dividend is payable on Tuesday, 11 April 2023 to holders of ordinary
shares recorded in the register of the Company at the close of business on the record date,
being Thursday, 6 April 2023.

The last day to trade “cum” dividend will be Monday, 3 April 2023 and shares will commence
trading “ex” dividend as from the commencement of business on Tuesday, 4 April 2023.

A South African dividend withholding tax of 20% will be applicable to all shareholders who are
not either exempt or entitled to a reduction of the withholding tax rate in terms of a relevant
Double Taxation Agreement, resulting in a net dividend of 464.00000 cents per share payable
to those shareholders who are not eligible for exemption or reduction. Application forms for
exemption or reduction may be obtained from the Transfer Secretaries and must be returned
to them on or before Monday, 3 April 2023.

The issued share capital of the Company at the declaration date is 105 517 780 listed ordinary
shares, 10 117 951 unlisted redeemable convertible B ordinary shares and 3 000 000 listed
cumulative preference shares. The dividend has been declared from the income reserves of
the Company.



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Any change of address or dividend instruction must be received on or before Monday, 3 April
2023.

Share certificates may not be dematerialised or rematerialised between Tuesday, 4 April 2023
and Thursday, 6 April 2023, both days inclusive.

By order of the Board
Cheryl Singh
Group Company Secretary
Woodmead, Sandton

DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors are responsible for the preparation and presentation of the summarised
consolidated year-end financial statements in accordance with International Financial
Reporting Standards; the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee; the Financial Pronouncements as issued by the Financial Reporting
Standards Council; and the requirements of the Companies Act of South Africa.

The Directors are also responsible for such internal controls as the Directors determine to be
necessary to enable the preparation of summarised consolidated year-end financial
statements that are free from material misstatement, whether owing to fraud or error.

AVAILABILITY        OF    FULL     ANNOUNCEMENT            AND      ANNUAL       FINANCIAL
STATEMENTS

The full announcement including the unmodified audit opinion of the external auditor, Deloitte
& Touche, on the summarised consolidated financial statements, and the basis for its
unmodified opinion is available at:

https://senspdf.jse.co.za/documents/2023/JSE/ISSE/AFE/FY2022.pdf

https://www.ftp.aeciworld-online.com/pdf/annual-results/2022/2022-resultsannouncement.pdf

The annual financial statements including the audit opinion of the external auditor, Deloitte &
Touche, which sets out key audit matters and the basis for its unmodified opinion is available
at:

https://www.ftp.aeciworld-online.com/reports/ar-2022/pdf/AECI2022fullafs.pdf

SHORT FORM ANNOUNCEMENT

The contents of this short-form announcement are the responsibility of the Board of Directors
of AECI. This short-form announcement is only a summary of the information in the full
announcement and does not contain full or complete details. This announcement is itself not
audited but extracted from audited results. Any investment decisions made by investors and/or
shareholders and/or noteholders should be based on consideration of the full announcement
as a whole. Investors, shareholders and noteholders are encouraged to review the full

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announcement which is available on SENS and on AECI’s website. The full announcement is
also available for inspection at the registered office of AECI. Copies of the full announcement
are available to investors, shareholders and noteholders at no charge. These copies can also
be requested by contacting the Group Company Secretary: C Singh, Private Bag X21, Gallo
Manor, 2052, cheryl.singh@aeciworld.com groupcommunications@aeciworld.com.

Directors: KDK Mokhele (Chairman), ST Coetzer1 (interim CE), SA Dawson2, FFT De Buck,
WH Dissinger3, G Gomwe4, KM Kathan (Executive), P Mishic O’Brien5, AM Roets, PG Sibiya,
A Takoordeen (Executive)

1 Canadian
2 Australian
3 German
4 Zimbabwean
5 American

Group Head Investor Relations: Z Salman

Group Company Secretary: C Singh

Board sign-off date: 28 February 2023

Results released on: 1 March 2023

Equity Sponsor and Debt Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, Cnr Fredman Drive and Rivonia Road, Sandton, 2196

Registered office
First floor, AECI Place, 24 The Woodlands, Woodlands Drive, Woodmead, Sandton

Share transfer secretaries
Computershare Investor Services Pty Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, 2196
And Computershare Investor Services PLC, PO Box 82, The Pavilions,
Bridgwater Road, Bristol BS 99 7NH, England




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