2020 INTERIM RESULTS For the half-year ended 30 June 2020 29 July - PowerPoint PPT Presentation

2020 INTERIM RESULTS For the half-year ended 30 June 2020 29 July 2020

WELCOME & INTRODUCTION 01. COVID-19 RESPONSE & IMPACT 02. PERFORMANCE SUMMARY 03. OTHER BUSINESS DRIVERS 04. EARNINGS ANALYSED 05. PERFORMANCE BY SEGMENT 06. NEW STRUCTURE & BRANDING 07. OUTLOOK & FOCUS

INTRODUCTION: EXECUTIVE TEAM 2 Mark Dytor – CE Mark Kathan – CFO Edwin Ludick – Executive Dean Mulqueeny – Executive Dean Murray – Executive Candice Watson – Group HC Executive

NON-EXECUTIVE DIRECTORS 3 Khotso Mokhele Steve Dawson Fikile De Buck Walter Dissinger Godfrey Gomwe Jonathan Molapo Rams Ramashia Marna Roets Philisiwe Sibiya

01. COVID-19 response & impact

COVID-19: RESPONSE 5 – Risk acknowledged in February – Task Team established early March › Strategic intent defined › Manage and mitigate effects on people and business (BCM) › Response Plan developed and updated as required › All Exco members plus internal and external subject experts › Daily meetings continue – 7 600 employees in 26 countries on six continents – Impact and restrictions not uniform across geographic/market footprint – In SA: some businesses classified as providers of essential services › Coal mining, agriculture and potable drinking water industries › Other Group business curtailed or halted

COVID-19: INTERNATIONAL CONTEXT – CUMULATIVE CASES (AS AT 24 JULY 2020) 6 Germany Active: 0 Recovered: 1 Mali Active: 0 Recovered: 1 Ghana Active: 0 Recovered: 3 DRC Active: 0 Recovered: 2 Indonesia Active: 0 Recovered: 2 South-Africa Active: 90 Hospitalised: 1 Recovered: 80 Mortality: 3 CUMULATIVE ACTIVE CASES MORTALITY TOTAL CASES ACTIVE HOSPITALISED MORTALITY RECOVERED RELATIVE TO NO. RATE TESTS 183 90 1 3 89 OF EMPLOYEES GROUP 0,041% 1,24% 503 174 90 1 3 80 SA 9 0 0 0 9 INTERNATIONAL

COVID-19: SOUTH AFRICA – EMPLOYEE DISTRIBUTION 7 EMPLOYEE DISTRIBUTION IN DESCENDING ORDER (%) 2 3 3 PROVINCE 4 5 Gauteng KwaZulu-Natal 6 Western Cape Employees Free State 4 714 Mpumalanga 54 8 North West Limpopo Eastern Cape Northern Cape 15

COVID-19: EMPLOYEE HEALTH TRACKER REVIEW 8 International Cases recorded in SA by province Cumulative cases recorded: April to July Active Recovered Hospitalised Mortality Active Recovered Hospitalised Mortality 183 3 2 1 1 48% 89 39 recovered 1 10 44 1 90 6 32 10 3 20 7 6 37 4 11 10 1 1 4 1 6 1 5 2 2 2 3 1 APR MAY JUNE JULY GP MP KZN WC FS NC NW EC LP

COVID-19 RESPONSE: WORKING ARRANGEMENTS 9 81% 12% 7% JUL 81% 11% 8% JUNE 62% 13% 25% MAY 47% 14% 39% APRIL 35% 18% 47% MARCH Working on Site Working from Home Lockdown Full lockdown Partial lockdown Lockdown restrictions lifted Nigeria Burkina Faso; Tanzania; Brazil; Australia; Namibia; Botswana; China; Mauritius, Malawi; USA; Mali; Guinea; Germany; Zambia; Chile; South Africa; Indonesia; Swaziland;; Zimbabwe Ghana; Senegal; DRC

COVID-19: RELIEF INITIATIVES AS AT JULY 2020 10 R11,8m donated internationally R9,8m invested 120 000 R1,87m pledged 3 200 food R2m for Solidarity Fund beneficiaries for food parcels parcels distributed DISTRIBUTION OF 10 000 PARCELS TARGETED Initial socio-economic relief initiatives focused on provision of preventative gear and products in areas of need. Further provision made towards food security as the pandemic escalated.

02. Performance summary

PERFORMANCE SUMMARY 13 REVENUE HEPS -6% to R11 265m -34% to 240c Underlying* +3% to R12 280m Underlying* +28% to 593c Foreign & export revenue: 48% of total revenue EBITDA GEARING -18% to R1 111m 32% (FY19: 36%) Underlying* +7% to R1 618m PROFIT FROM OPERATIONS INTERIM DIVIDEND OF -32% to R558m 100c DECLARED Deferred final dividend for ’19 Underlying* +9% to R1 065m to be paid in ’20 * Excl. realignment/restructuring costs, impairments, profit from sale of business unit and estimated COVID-19 impact.

PERFORMANCE SUMMARY 14 COVID-19 effects on people and business in 2Q › No certainty on timing/extent of recovery to pre-pandemic business levels Cash management prioritised Restructuring of Food & Beverage and Chemicals segments › Costs of R64m incurred › R69m impairments (exit non-performing businesses) › Anticipate at least R100m annualised benefits Sale of paper chemicals business unit concluded › R208m received Anticipated benefits of Mining Solutions and Water & Process realignment projects realised

SALE OF PAPER CHEMICALS BUSINESS UNIT 15 (R100m) Selling price Net assets disposed of R208m and liabilities recognised >7x EBITDA R108m Profit on disposal of business − Group was principal’s pulp and paper specialty chemical distributor in Africa − Strategic decision by principal to supply market directly

PERFORMANCE SUMMARY CONT. 16 Safety performance › Improvement trend sustained › TRIR of 0,36 (1H19: 0,51 & FY19: 0,38) Retained Level 2 B-BBEE Contributor status GCR rating maintained: A+ with stable outlook

SAFETY PERFORMANCE: TRIR 17 1,0 0,8 0,58 0,6 0,45 0,39 0,38 0,36 0,4 0,35 0,2 0,0 2015 2016 2017 2018 2019 1H20

03. Other business drivers

BUSINESS DRIVERS 19 ZAR/US$ exchange rate

BUSINESS DRIVERS 20 Gold

BUSINESS DRIVERS 21 PGMs

BUSINESS DRIVERS 22 Cobalt, copper and nickel

BUSINESS DRIVERS 23 Coal and iron ore

BUSINESS DRIVERS 24 SA mining production volumes

BUSINESS DRIVERS 25 Brent crude oil

BUSINESS DRIVERS 26 SA manufacturing production volumes

04. Earnings analysed

PERFORMANCE ANALYSED 28 1H20 1H19 % change Profit from Profit from Profit from EBITDA operations HEPS EBITDA operations HEPS EBITDA operations HEPS (Rm) (Rm) (cps) (Rm) (Rm) (cps) (%) (%) (%) Reported 1 111 558 240 1 361 826 365 (18,4) (32,4) (34,2) Restructuring/strategic realignment 92 92 59 156 156 100 Impairment 69 69 Profit on sale of business (108) (108) Underlying excl. COVID-19 1 164 611 299 1 517 982 465 (23,3) (37,8) (35,6) Estimated impact of COVID-19 454 454 294 Underlying 1 618 1 065 593 1 517 982 465 6,7 8,5 27,6

PROFIT FROM OPERATIONS ANALYSED 29 Rm 1H19 1H19 1H19 1H19 1H19 1H19 1H20 1H20 1H20 1H20 1H20 1H20 1 200 1 200 1 200 1 200 1 200 1 200 1 000 1 000 1 000 1 000 1 000 1 000 454 454 454 454 454 454 1 065 1 065 1 065 1 065 1 065 1 065 156 156 156 156 156 156 982 982 982 982 982 982 800 800 800 800 800 800 445 445 445 445 445 445 826 826 826 826 826 826 600 600 600 600 600 600 92 92 92 92 92 92 611 611 611 611 611 611 92 92 92 92 92 92 (108) (108) (108) (108) (108) (108) 69 69 69 69 69 69 558 558 558 558 558 558 400 400 400 400 400 400 466 466 466 466 466 466 381 381 381 381 381 381 200 200 200 200 200 200 0 0 0 0 0 0 1Q19 1Q19 1Q19 1Q19 1Q19 1Q19 2Q19 2Q19 2Q19 2Q19 2Q19 2Q19 1H19 1H19 1H19 1H19 1H19 1H19 Restructuring Restructuring Strategic Strategic Strategic Strategic Underlying Underlying Underlying Underlying Underlying Underlying 1Q20 1Q20 1Q20 1Q20 1Q20 1Q20 2Q20 2Q20 2Q20 2Q20 2Q20 2Q20 1H20 1H20 1H20 1H20 1H20 1H20 Profit on sale Profit on sale Profit on sale Profit on sale Profit on sale Profit on sale Impairments Restructuring Impairments Restructuring Impairments Restructuring Impairments Restructuring Impairments Restructuring Impairments Restructuring Underlying Underlying Underlying Underlying Underlying Underlying COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 Underlying Underlying Underlying Underlying Underlying Underlying realignment realignment realignment realignment 1H19 1H19 1H19 1H19 1H19 1H19 of business of business of business of business of business of business 1H20 excl. 1H20 excl. 1H20 excl. 1H20 excl. 1H20 excl. 1H20 excl. impact impact impact impact impact impact 1H20 1H20 1H20 1H20 1H20 1H20 COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 6% 7% 7% 8% 8% 2% 5% 5% 9% TP margin TP margin:

EARNINGS ANALYSED 30 – EBITDA -18,4% to R1 111m HEPS – Profit from operations -32,4% to R558m 1 150 – HEPS -34,2% to 240c 1 045 959 – Trading margin = 5% (’19: 6,9%) 894 818 – RONA of 11,4% (’19: 13,3%) – Tax rate unchanged at 32% 565 458 386 365 293 240 15 16 17 18 19 H1 20 1H20 1H H1 (cps) FY (cps)

COVID-19: CASH MANAGEMENT 31 – Capex = R322m 4 500 95 › R117m for expansion projects 85 4 000 4 177 576 › R205m for sustenance 75 3 500 514 – NWC to revenue of 18,7% (17,8% in ’19) 3 454 65 3 208 3 000 – Net borrowings of R3 722m 55 2 500 – Gearing at 32% (53% in June ’19) 41 45 36 2 000 – Cash interest cover of 6,7x 32 35 – Foreign dividends of US$9m repatriated 1 500 25 – Interim cash dividend of 100c declared 1 178 1 000 15 15 424 – Final cash dividend No. 172 for ’19 to be 297 500 5 paid in ’20 5 3 - (5) 0 0 0 0 15 16 17 18 19 H1 20 1H20 Borrowings (Rm) Finance lease liabilities (Rm) Gearing (%)