Andries van Heerden | Chief Executive Officer | Afrimat - PowerPoint PPT Presentation

Andries van Heerden | Chief Executive Officer | Afrimat Limited Presentation to African Mining investors, 11 February 2015

Afrimat group overview A supplier of quality materials sourced from our quarries and open pit mines Strategically diversified through product range, target market and location 2

WHAT WE DO Quarrying : aggregates Open pit mining : industrial minerals Concrete brick & block making Readymix concrete 3

Quarrying: aggregates 4

Open pit mining : industrial minerals 5

Concrete brick & block making 6

Readymix concrete 7

Company strategy Open pit mining Locally priced commodities Unique competitive advantage Geographic location Unique metallurgy Structural cost advantage Highly entrepreneurial Value added to certain products 8

Afrimat’s portfolio and footprint … portfolio … and footprint MINING & AGGREGATES Commercial quarries (23) Sand and gravel mines (7) Dolomite mines (2) Clinker (3) Limestone mine (1) Silica mine (1) Mobile crushing Drilling & blasting CONCRETE BASED PRODUCTS Concrete brick & block factories (9) Readymix batching sites (14) … which generates a balanced consistent income stream 9

Revenue and operating profit Revenue (R’000) Contribution from operations (R’000) 240 000 1 800 000 220 000 1 600 000 200 000 969 316 119 362 180 000 1 400 000 160 000 1 200 000 666 236 140 000 1 000 000 76 860 489 420 120 000 62 334 800 000 398 622 100 000 45 868 1 030 098 600 000 931 871 80 000 127 349 108 909 671 349 60 000 400 000 506 717 455 874 75 623 61 747 61 906 40 000 200 000 20 000 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 1st half 2nd half 1st half 2nd half 10

Headline earnings per share Interim period HEPS (cents per share) 70.0 61.1 CAGR 19.6% 60.0 2010 - 2014 49.3 50.0 40.0 35.0 29.9 29.8 30.0 20.0 10.0 - 2010 2011 2012 2013 2014 11

Statement of financial position - assets Unaudited Unaudited Audited R’000 Aug 2014 Aug 2013 Feb 2014 Property, plant and equipment 709 070 654 808 662 306 Mining rights and goodwill 154 553 157 423 155 901 Inventories 138 036 103 404 112 965 Trade and other receivables 335 305 309 064 305 967 Cash 36 947 94 278 92 328 Other assets / BEE funding 171 029 147 408 149 950 1 544 940 1 466 385 1 479 417 Increased inventory to meet customer demand and enable lower manufacturing costs Used own cash for asset financing 12

Statement of financial position - equity & liabilities Unaudited Unaudited Audited R’000 Aug 2014 Aug 2013 Feb 2014 Total equity 864 072 837 963 795 518 Borrowings 152 907 171 038 187 873 Provisions 63 530 55 860 60 416 Overdraft 85 353 51 451 57 856 Trade and other liabilities 273 360 265 743 265 376 Other liabilities / deferred tax 105 718 97 362 99 346 1 544 940 1 466 385 1 479 417 Reduced borrowings by financing assets with surplus cash 13

Dividends 14 13 12 11 10 8 8 6 6 6 4 2 0 2010 2011 2012 2013 2014 14

OUR MARKET 15

SA age of national road network Source StanLib 16

Paved network condition: Summary 2013 17 Source: SABITA

Provincial and SANRAL’s expenditures on roads trend Source: SABITA 18

Risk mitigation • Drive to create a unique and positive culture Labour unrest • Communication and upliftment • BEE share scheme • Seeking opportunities outside of SA Country risk in • Eyes wide open in South Africa South Africa • Payments terms strictly monitored Steel industry under • No single dominant debtor • pressure Strict efficient credit control • Constant strategic management (avoiding threats, exploiting opportunities) Macro-economic • Entrepreneurial culture and creative innovative threats solutions • Strong balance sheet 19

1000 1200 1400 1600 1800 2000 200 400 600 800 0 2010/01/01 2010/03/01 2010/05/01 2010/07/01 2010/09/01 2010/11/01 2011/01/01 2011/03/01 2011/05/01 2011/07/01 Afrimat closing share price (cps) 2011/09/01 2011/11/01 2012/01/01 2012/03/01 2012/05/01 2012/07/01 2012/09/01 2012/11/01 2013/01/01 2013/03/01 2013/05/01 Share price history 2013/07/01 2013/09/01 2013/11/01 2014/01/01 2014/03/01 2014/05/01 2014/07/01 2014/09/01 2014/11/01 2015/01/01 20

Q & A Thank you for your attendance and participation www.afrimat.co.za For any further Investor Relations questions please contact: Andries van Heerden (CEO): 021 917 8840 or Vanessa Rech (Keyter Rech Investor Solutions): 011 447 8656 21