AECI Limited Summarised Results for the year ended 31 Dec 2021

 
TIDM87FZ 
 
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, Board change and final cash 
dividend declaration for the year ended 31 December 2021 
 
Revenue 
 
+8% to R26 053m 
 
Foreign & export revenue: 41% of total revenue 
 
HEPS 
 
+27% to 1 116c 
 
EBITDA 
 
+5% to R3 091m 
 
Cash generated from operating activities 
 
R1 467m 
 
Profit from operations 
 
+124% to R2 052m 
 
Gearing 
 
24% 
 
(1H21: 27%; FY20: 22%) 
 
Final cash dividend of 
 
505 cents per share declared 
 
685 cents per share total dividend for '21 
 
Net debt:EBITDA 
 
<1 
 
Best-ever safety performance 
 
TRIR of 0,23 
 
('20: 0,42) 
 
In 2021, AECI successfully navigated through three waves of COVID-19, 
overcoming significant global supply chain challenges and higher commodity 
prices to ensure the reliable supply of our diverse range of quality products 
and services to customers in various markets around the world. At the same 
time, we recorded our best-ever safety performance and made significant 
progress towards the achievement of our sustainability targets. 
 
Amid high input costs, the impact of supply chain disruptions on working 
capital and a stronger average rand affecting hard currency earnings, we 
reported robust financial results, demonstrating the benefits of our 
diversification, agility and strategic pillar structure. 
 
The Board of Directors formally reviewed and approved our strategy in October, 
clearly defining the Company's growth plans, targets and objectives to ensure 
we deliver on our purpose of "One AECI, for a Better World". 
 
COVID-19 
 
Across the world, COVID-19 continued to impact health and wellbeing, lives and 
livelihoods. Many of our people experienced bereavement among their families 
and friends. Tragically 12 of our colleagues succumbed to COVID-19-related 
illnesses. All were in South Africa and all passed away during the first three 
waves of the pandemic. The Board and management extend their sincere 
condolences to their families and to all employees who have lost loved ones. 
The fourth wave of COVID-19 is receding and thankfully no further deaths have 
occurred. 
 
People everywhere became more accustomed to navigating the crisis, with changes 
in consumer patterns impacting supply chain dynamics. Supply chains and 
shipments slowed, causing shortages of certain raw and packaging materials, 
thus disrupting production. Although not unscathed, companies with local 
sources of supply and local production facilities were better able to meet 
their customers' requirements. For many companies the need to hold higher 
levels of more expensive inventory pushed up working capital. This was indeed 
the case for AECI. 
 
Our COVID-19 Task Team continued to meet - virtually - every week, implementing 
our Response Plan. The plan focuses on mitigating the impact of the pandemic on 
our people, our operations and the supply of products and services to 
customers, as well as on the roll-out of vaccinations. Together with the 
Response Plan, the Group also continued to apply its business continuity plans 
at all operations globally. 
 
Almost all AECI's people are now back at their places of work. The Board and 
management would like to thank all employees for their diligence and 
determination in response to the challenges of life under COVID-19. We are also 
grateful to our many other stakeholders for their support. 
 
Safety 
 
One of our three strategic platforms is "Zero Harm and Sustainability". The 
year 2021 was the most successful in AECI's history in terms of performance 
against all the occupational health and safety indicators that we measure. 
 
The Total Recordable Incident Rate (TRIR) improved to 0,23 (2020: 0,42). The 
TRIR measures the number of recordable incidents per 200 000 hours worked. 
While COVID-19 continued to present numerous challenges to our employees, we 
learnt how to deal with the pandemic in the workplace and our people renewed 
their commitment to achieving Zero Harm by re-committing to our Safety 
Improvement Plan. A key part of this plan is the standardisation across the 
business of items such as safety, health and environment risk descriptors, 
processes and systems. 
 
Financial performance 
 
AECI's revenue increased by 8% to R26 053 million (2020: R24 111 million). AECI 
Mining and AECI Chemicals were the business pillars most affected by COVID-19 
in 2020. The businesses in both segments recovered well in 2021, with AECI 
Mining benefiting as global mining activity returned to more normalised levels. 
AECI Chemicals further benefited from the strategic realignment process 
completed in 2020 which delivered in line with expectations. Also assisting was 
a level of overall improvement in South Africa's manufacturing, infrastructure 
and general industrial sectors, albeit from a low base. 
 
Of the total Group revenue, 41% (2020: 44%) was generated outside of South 
Africa, with the stronger average rand exchange rate against these major 
currencies having an impact. 
 
EBITDA of R3 091 million grew by 5% from 2020's R2 943 million. Profit from 
operations recovered strongly to R2 052 million, 124% up from 2020's R917 
million. There were no impairments in the current year, compared to 2020 which 
had been negatively affected by impairments of certain property, plant and 
equipment and goodwill in the amount of R890 million, mostly relating to the 
goodwill on the acquisition of AECI Much Asphalt. 
 
Reported headline earnings per share (HEPS) of 1 116 cents was 27% higher 
year-on-year (2020: 880 cents). Headline earnings increased to R1 178 million 
from 2020's R928 million. 
 
The Company remains in a solid financial position and has repaid R1 877 million 
in term debt, while maintaining a robust net gearing ratio of 24% (2020: 22%). 
There has been an investment in inventory to ensure supply is available to meet 
increasing demand in an environment where supply chain timing has extended and 
disruptions have become frequent. 
 
The Board, considering the solid performance and stable financial position, 
declared a final ordinary cash dividend of 505 cents (final ordinary dividend 
of 470 cents for the year ended 31 December 2020), a 7% increase. 
 
The total ordinary dividend for 2021 was 685 cents, up from the 570 cents total 
dividend for 2020, a 20% increase. 
 
The net asset value per share attributable to ordinary shareholders increased 
by 7% (from 9 679 cents in 2020 to 10 384 cents) and basic earnings per share 
increased by more than 100% (from 127 cents in 2020 to 1 125 cents in 2021). 
 
Directorate and Group Company Secretary 
 
Changes that were announced and took effect in the year, as well as those that 
take effect in 2022, were as follows: 
 
  * Patricia Mishic O'Brien joined the Board on 1 July 2021 as an Independent 
    Non-executive Director. She was appointed to further strengthen the Board's 
    capacity in terms of knowledge and experience of the chemicals industry at 
    an international level. Ms O'Brien joined the Social and Ethics Committee 
    and the Integrated Chemicals Financial Review Committee on 1 August 2021. 
  * Cheryl Singh was appointed as Group Company Secretary with effect from 1 
    September 2021, filling a vacancy. 
  * Aarti Takoordeen was appointed as Chief Financial Officer and Executive 
    Director, effective 20 May 2022. She succeeds Mark Kathan, who has served 
    as CFO from 2008. Mr Kathan assumes leadership of AECI Mining, a key role 
    in the Group. He succeeds the previous incumbent who retired from that 
    position on 31 December 2021. Mr Kathan remains on the Group's Board of 
    Directors. 
 
After a tenure of 12 years, on 1 March 2022, Rams Ramashia advised the Board of 
his intention to step down as a Non-executive Director of the Company at the 
next AGM, on 31 May 2022. During his tenure as Non-executive Director, Rams 
served as a member of the Remuneration and Nomination Committees. He also 
chaired the Social and Ethics Committee prior to becoming Chairman of the Risk 
Committee. The Board thanks him for his valuable contribution. 
 
Dividend 
 
Declaration of final ordinary cash dividend No. 176 
 
Notice is hereby given that on Tuesday, 1 March 2022 the Directors of AECI 
declared a gross final cash dividend of 505 cents per share in respect of the 
financial year ended 31 December 2021. The dividend is payable on Monday, 11 
April 2022 to holders of ordinary shares recorded in the register of the 
Company at the close of business on the record date, being Friday, 8 April 
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 404 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 Tuesday, 5 April 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, 5 April 2022. 
 
The salient dates for the dividend will be as follows: 
 
Last day to trade cum dividend           Tuesday, 5 April 2022 
 
Ex dividend trade                        Wednesday, 6 April 2022 
 
Record date                              Friday, 8 April 2022 
 
Payment date                             Monday, 11 April 2022 
 
Share certificates may not be dematerialised or rematerialised between

Wednesday, 6 April 2022 and Friday, 8 April 2022, both days inclusive. 
 
By order of the Board 
 
Cheryl Singh 
 
Group Company Secretary 
 
Woodmead, Sandton 
 
1 March 2022 
 
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 has been released on SENS 
and is available at: 
 
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/AFE/fy21.pdf 
 
https://investor.aeciworld.com/s/2021-results-announcement.pdf 
 
The annual financial statements including the audit opinion of the external 
auditor, Deloitte & Touche, which sets out a key audit matter and the basis for 
its unmodified opinion is available at: 
 
https://investor.aeciworld.com/s/AECI2021fullafs.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. 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 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. 
 
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, 2196 
 
Computershare Investor Services plc, PO Box 82, The Pavilions, Bridgwater Road, 
Bristol BS 99 7NH, England 
 
Sponsor 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 
 
 
 
END

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