28 Jul - 6 min read

Summarised interim financial results to 30 June 2021, cash dividend declaration and Board responsibility changes.

Summarised interim financial results to 30 June 2021, cash dividend declaration and Board responsibility changes.

AECI LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1924/002590/06)
Tax reference No. 9000008608
Share code: AFE         ISIN: ZAE000000220
Hybrid code: AFEP       ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)

Summarised interim financial results to 30 June 2021, cash dividend declaration and Board responsibility changes

REVENUE
+5% to R11 802m
Foreign & export revenue: 43% of total revenue

EBITDA
+23% to R1 453m

PROFIT FROM OPERATIONS
+70% to R948m

HEPS
+120% to 529c

GEARING
27% (1H20: 32%)

INTERIM CASH DIVIDEND
180c DECLARED

IMPROVED SAFETY PERFORMANCE
TRIR of 0,36
(0,42 in Dec ’20)

AECI delivered a strong performance for the first half of 2021 (the period). Our results demonstrated the
benefits of our diversity, agility and our strategic pillar structure. This bolstered our resilience as we
recovered very well from the COVID-19 effects that severely impacted results to 30 June 2020 (the prior
corresponding period).

RECOVERY FROM THE EFFECTS OF COVID-19
As the world recovered from the initial wave of infection, the trading environment began to normalise in the
second six months of last year. This improvement trend continued into 2021, albeit that the recovery has not
occurred at the same rate internationally and across all sectors of activity. Whereas the US and Chinese
economies are on rapid growth trajectories, others are lagging. South Africa and Europe are among these.

The net asset value per share attributable to ordinary shareholders decreased by 9% (from 10 537 cents at
June 2020 to 9 556 cents in 2021) and basic earnings per share increased by 117% (from 245 cents in 2020
to 531 cents in 2021). Headline earnings per share (HEPS) was 529 cents or 120% higher than the 240
cents reported last year.

SAFETY
The Total Recordable Incident Rate (TRIR), which measures the number of recordable incidents per 200 000
hours worked, improved to 0,36 from 0,42 at the end of last year. A Group-wide programme to reinforce the
focus on holistic wellness and safety was launched early in 2021. Some key elements of the programme
cover people engagement, behaviour-based safety, risk management and process safety. Although the
benefits of the programme are beginning to emerge, much work remains to be done.

FINANCIAL PERFORMANCE
All Group businesses were operational in the half-year, unlike in 2020 when restrictions associated with
mitigating the spread and effects of the coronavirus required some of our businesses and those of our
customers to scale back or suspend their activities.

In the prior corresponding period, management estimated that the impact of the COVID-19 pandemic on
revenue and profit from operations was R1 015 million and R454 million, respectively. The negative effect on
headline earnings per share (HEPS) was estimated at 294 cents.

While there was a strong year-on-year recovery, some markets have yet to return to pre-pandemic levels.

                                                                1H21                                 1H20                            % change
                                  Revenue   EBITDA    Profit    HEPS   Revenue   EBITDA     Profit   HEPS  Revenue  EBITDA    Profit     HEPS
                                     (Rm)     (Rm)  from ops   (cps)      (Rm)     (Rm)   from ops  (cps)     (%)      (%)  from ops     (%)
                                                        (Rm)                                  (Rm)                               (%)
REPORTED                           11 802   1 453       948     529     11 265    1 180        558    240     4,8    23,1      69,9    120,4
Restructuring                                                                        92         92     59
Impairment                                                                                      69
Net profit from sale of business                                                  (108)      (108)
UNDERLYING EXCL. COVID-19          11 802   1 453       948     529     11 265    1 164        611    299     4,8    24,8      55,2     76,9
Estimated net impact of COVID-19                                         1 015      454        454    294
UNDERLYING                         11 802   1 453       948     529     12 280    1 618      1 065    593    (3,9)  (10,2)   (11,0)   (10,8)

Revenue increased by 5% to R11 802 million (2020: R11 265 million). Growth was restricted by the key
considerations outlined below and this also affected the improvement in EBITDA and profit from operations:

-   not all mining customers on the African continent have resumed their operations; some remain on care
    and maintenance
-   four large customers in the oil refining and industrial sectors did not resume their operations in the period
-   last year’s sanitiser order at AECI Schirm did not recur
-   the stronger average rand foreign exchange rate against the US dollar and the Euro

EBITDA of R1 453 million was 23% higher than 2020’s R1 180 million. Profit from operations increased by
70% to R948 million (2020: R558 million).

Headline earnings increased to R559 million from R254 million in the prior corresponding period.

Given the progress made by the Company in its recovery from the effects of COVID-19, the Board has
declared an interim ordinary cash dividend of 180 cents (80% higher than the 100 cents for the half-year
ended 30 June 2020).

CHANGES IN SIGNIFICANT BOARD RESPONSIBILITIES
Patricia (Patty) Mishic O’Brien joined the Board as an Independent Non-executive Director with effect from 1
July 2021. She was appointed in accordance with AECI’s Board Nomination, Composition and Diversity
Policy. She will also join the Social and Ethics and the Integrated Chemicals Financial Review Committees
from 1 August 2021.

DIVIDEND
Declaration of interim ordinary cash dividend no. 175

NOTICE IS HEREBY GIVEN that on Tuesday, 27 July 2021, the Directors of AECI declared a gross interim
cash dividend of 180 cents per share, in respect of the six-month period ended 30 June 2021. The dividend
is payable on Monday, 6 September 2021 to holders of ordinary shares recorded in the register of the
Company at the close of business on the record date, being Friday, 3 September 2021.

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 144 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, 31 August 2021.

The issued share capital at the declaration date is 109 944 384 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, 31 August 2021.

The salient dates for the dividend will be as follows:

Last day to trade cum dividend              Tuesday, 31 August 2021
Ex dividend trade                           Wednesday, 1 September 2021
Record date                                 Friday, 3 September 2021
Payment date                                Monday, 6 September 2021

Share certificates may not be dematerialised or rematerialised from Wednesday, 1 September 2021 to
Friday, 3 September 2021, both days inclusive.

By order of the Board

WJ Strydom
Acting Group Company Secretary

Woodmead, Sandton
28 July 2021

The full long-form announcement is available at:

https://senspdf.jse.co.za/documents/2021/JSE/ISSE/AFE/hy21.pdf

https://investor.aeciworld.com/s/2021-results-announcement.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 available for inspection at the registered office of AECI, at no charge,
during normal business hours from 28 July 2021. Copies of the full announcement, at no charge, can also be
requested by contacting the Group Company Secretary: WJ Strydom, Private Bag X21, Gallo Manor, 2052,
wynand.strydom@aeciworld.com or groupcommunications@aeciworld.com .

REGISTERED OFFICE
First floor, AECI Place, 24 The Woodlands, Woodlands Drive, Woodmead, Sandton

SHARE TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank,
Johannesburg, 2196

Computershare Investor Services plc, PO Box 82, The Pavilions, Bridgwater Road, Bristol BS99 7NH,
England

EQUITY AND DEBT SPONSOR
Rand Merchant Bank (a division of FirstRand Bank Limited), 1 Merchant Place, cnr Fredman Drive and
Rivonia Road, Sandton, 2196

DIRECTORS
KDK Mokhele (Chairman), SA Dawson*, FFT De Buck, WH Dissinger**, MA Dytor (Chief Executive), G
Gomwe†, KM Kathan (Executive), PM Mishic O’Brien‡, R Ramashia, AM Roets, PG Sibiya
* Australian ** German † Zimbabwean ‡ American

AECIWORLD.COM

Date: 28-07-2021 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from AECI Limited (JSE:AFE) when you join Listcorp.