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 UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION
FOR THE HALF-YEAR ENDED 30 JUNE 2022
    •   Revenue up 31% to R 15 505 million
    •   EBITDA up 6% to R 1 545 million
    •   EBIT up 11% to R 1 056 million
    •   HEPS up 8% to 573 cents
    •   Growth capex of R 438 million (59% of total R 748 million capex)
    •   Working capital at 22% of revenue from 17% in H1 2021
    •   Gearing at 44% (27% in H1 2021)
    •   Interim cash dividend up 8% to 194cps
    •   Best-ever safety performance: TRIR of 0.15 (0.23 at 31 December 2021)


AECI delivered record revenue, earnings before interest and tax (EBIT) and headline earnings per share in
improved market conditions which saw customer demand progressively returning to pre-pandemic levels.
The Group’s financial performance during the period reflects:
    • Strong global commodity prices, which resulted in revenue growth of 31% to R15 505 million (H1
       2021: R 11 802 million)
    •   Pricing discipline benefits in new and existing contracts, which largely offset higher input costs, and
        helped EBIT grow by 11% to R 1 056 million (H1 2021: R 948 million)
    •   Elevated levels of working capital which is reflective of higher raw material prices. This necessitated
        increased short-term debt and, consequently, increased net finance costs
    •   A stronger organic growth focus with 59% of the R 748 million capex spent allocated to growth
        investments (H1 2021: 21% of the R 365 million capex spent)
    •   Our commitment to returning value to shareholders, supported by the Board’s declaration of an
        interim dividend of 194 cents per share (H1 2021: 180 cents per share), an 8% increase.


R million (unless stated otherwise)                             H1 2022             H1 2021             % change
Total revenue                                                   15 505              11 802                31%
EBITDA                                                           1 545               1 453                 6%
EBITDA margin                                                     10%                 12%                  -2%
Depreciation and amortisation                                     486                 500                  -3%
EBIT                                                             1 056                948                 11%
EBIT margin                                                      7%                   8%                 -1%
Net profit after tax                                             626                 577                 9%
Earnings per share (EPS) (cents)                                 573                 531                 8%
Headline earnings per share (HEPS) (cents)                       573                 529                 8%
Cash generated from operations                                  1 720                1 573               9%


EPS and HEPS increased by 8%, to 573 cents, our highest recorded HEPS in a first half. The Group generated cash
from operations of R 1 720 million (H1 2021: R 1 573 million). The net asset value per share attributable to ordinary
shareholders increased by 8% (from 9 556 cents at June 2021 to 10 343 cents).

The increase in inventory to R 6 518 million (H1 2021: R 4 188 million), primarily due to the raw material price
impact, was matched by an increase of R 2 256 million in short-term debt and resulted in a net gearing ratio of 44%
(H1 2021: 27%). The Group remains confident of the timing and certainty related to the conversion of working
capital to cash. Long-term covenants remain well within the target cover range of 2.5 times earnings before
interest, tax, depreciation and amortisation (EBITDA), at 1.6 times EBITDA (H1 2021: 0.9 times EBITDA). AECI
maintained its credit rating at A+(za) with an upgraded outlook from neutral to positive from GCR Ratings, a South
African credit rating agency.

Safety and sustainability
Zero Harm to people and the environment is always our top priority. This is underpinned by our values and a
deeply embedded culture of safety. We were pleased that further progress in this regard was evident in another
record-low Total Recordable Incident Rate (TRIR) of 0.15 (0.23 at 31 December 2021). The TRIR measures the
number of recordable incidents per 200 000 hours worked. Our good performance trend on all the occupational
health and safety indicators that we measure was also sustained. We are on track to achieve our sustainability
targets by 2025.
Future focus and prospects
Our long-term strategic objectives are to pursue further international growth where we have competitive
advantage. In this regard, we are well positioned through our existing international presence, our diversity in
terms of our product and service offering, and the agility and resilience in meeting our customers’ needs.
At the same time, we are engaged in active portfolio management and resource allocation to maximise value
creation. Ongoing review of underperforming businesses and clear targets for measuring delivery in this
regard are top priorities for management.
The growth capital invested in the period and the planned investment in H2 2022 will begin to deliver
returns in 2023. All our activities remain underpinned by our ESG commitments and targets, as we continue
our strategic journey to deliver “a better world” as One AECI.
Dr Khotso Mokhele, AECI Chairman notes: “The Board joins me in thanking Mark Dytor for his long tenure
and diligent service to the Group. Mark’s quality leadership is evident in the expansion international story
that is the AECI Group. We appreciate the tremendous contribution he has made in building a strong and
resilient business.”
The Board has initiated a comprehensive internal and external search process to identify a permanent CEO. The
process will be led by the Chairman of the Board supported by the Chairman of the Remuneration and Human
Capital Committee.




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Changes to the Board
During the period under review, and as previously announced, the following changes were made to the Board of
Directors of AECI:
    •   Mark Dytor will formally retire as Chief Executive Officer and Executive Director, effective 31 July 2023
    •   Aarti Takoordeen was appointed as Chief Financial Officer and Executive Director, effective 20 May 2022
    •   Rams Ramashia retired from his position as a Non-executive Director of the Company on 31 May 2022
    •   Sam Coetzer was appointed to the Board as a Non-executive Director with effect from 1 July 2022. He is a
        global mining executive with over 30 years of international experience, operating in Canada, the USA, South
        America, Australia, Tanzania, Fiji and South Africa. This global mining experience and insight will provide an
        invaluable contribution in the execution of the Company’s international growth strategy.

The Board remains well diversified, with an appropriate mix of skilled and experienced individuals.


Dividend
Declaration of interim ordinary cash dividend No. 177
NOTICE IS HEREBY GIVEN that on Tuesday, 26 July 2022, the Directors of AECI declared a gross interim cash
dividend of 194 cents per share, in respect of the six-month period ended 30 June 2022.
The dividend is payable on Monday, 5 September 2022 to holders of ordinary shares recorded in the register of the
Company at the close of business on the record date, Friday, 2 September 2022.
The last day to trade ‘cum’ dividend will be Tuesday, 30 August 2022 and shares will commence ex-dividend
dividend from the commencement of business on Wednesday, 31 August 2022.
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 155,20 cents per share 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 Tuesday, 30 August 2022.
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.
Any change of address or dividend instruction must be received on or before Tuesday, 30 August 2022.
The salient dates for the dividend will be as follows:
Last day to trade cum dividend                   Tuesday, 30 August 2022
Ex dividend trade                                Wednesday,31 August 2022
Record date                                      Friday, 2 September 2022
Payment date                                     Monday, 5 September 2022
Share certificates may not be dematerialised or rematerialised from Wednesday, 31 August 2022 to Friday, 2
September 2022, both days inclusive.




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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 these condensed consolidated interim
financial statements in accordance with International Financial Reporting Standards; IAS 34 – Interim Financial
Reporting; 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 interim financial statements that are free from material misstatement, whether owing to fraud
or error.
Preparation of interim results announcement
This announcement covers the unaudited condensed consolidated interim financial statements of the Group based
on International Financial Reporting Standards for the six months ended 30 June 2022. The preparation of these
condensed consolidated interim financial statements was supervised by the Chief Financial Officer, Aarti
Takoordeen CA(SA), in terms of section 29(1)(e) of the Companies Act, 2008, as amended.
Short form announcement
The full announcement has been released on SENS and is available at:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/AFE/Interim22.pdf
and on the Company’s website at:
https://www.ftp.aeciworld-online.com/pdf/investors/interim-results/2022/interim-results-2022.pdf


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. 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 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 or groupcommunications@aeciworld.com.


Directors
KDK Mokhele (Chairman), ST Coetzer 1, SA Dawson 2, FFT De Buck, WH Dissinger 3, MA Dytor (Chief Executive),
G Gomwe 4,KM Kathan (Executive), P Mishic O’Brien 5, PG Sibiya, A Takoordeen (Executive)

1
    Canadian 2 Australian 3 German 4 Zimbabwean 5 American

Group Company Secretary: C Singh



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27 July 2022


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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