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 AND FINAL CASH DIVID 
DECLARATION FOR THE YEARED 31 DECEMBER 2022 
 
  * Safety performance: TRIR of 0.15 (2021: 0.23) 
  * Revenue up 37% to R35 583 million 
  * EBITDA2 up 16% to R3 570 million 
  * EBIT1 flat at R2 047 million 
  * HEPS up 15% to 1 287 cents 
  * EPS down 22% to 878 cents 
  * Growth capex of R952 million (61% of total R1 552 million capex) 
  * Working capital at 19% of revenue from 18% in 2021 
  * Gearing at 45% (24% in 2021) 
  * Final cash dividend up 15% to 580 cents per share 
 
1 Earnings before interest and taxation is defined as profit before interest, 
taxation and share of profit of equity-accounted investees, net of taxation 
 
2 Earnings before interest, taxation, depreciation and amortisation calculated 
as profit from operations and equity-accounted investees plus depreciation, 
amortisation and impairments. 
 
EBITDA is unaudited. 
 
SAFETY AND SUSTAINABILITY 
 
As at 31 December 2022, the Group's total recordable injury rate (TRIR) was 
0.15, the lowest recorded TRIR by the Group since we started measuring. All the 
"zero milestones" were kept at zero, with no major incidents across the areas 
of occupational and process safety, environment or product transportation. We 
are well on track to achieve our sustainability targets by 2025. 
 
RESULTS OVERVIEW 
 
The Group delivered solid results, with revenue up 37% to R35 583 million 
(2021: R26 053 million) in an environment of high inflation, subdued global 
growth and high commodity prices. This pleasing performance reflects the 
significantly improved sales in AECI Mining, AECI Water and AECI Agri Health on 
the back of increased demand. However, EBIT was flat at R2 047 million (2021: 
R2 052 million) as it included a significant operating loss of R228 million, 
right-of-use asset and an impairment of property, plant and equipment (PPE) of 
R 445 million related to the AECI Schirm Germany business. 
 
R million (unless stated otherwise)            2022       2021     % change 
 
 
 
Revenue                                       35 583     26 053       37 
 
EBITDA                                        3 570      3 091        16 
 
EBITDA margin (%)                               10         12         -2 
 
Depreciation and amortisation                 1 026      1 032        1 
 
EBIT                                          2 047      2 052        0 
 
EBIT margin (%)                                 6          8          -2 
 
Net profit after taxation                      956       1 210       -21 
 
Earnings per share (EPS) (cents)               878       1 125       -22 
 
Headline earnings per share (HEPS) (cents)    1 287      1 116        15 
 
Cash generated from operations                3 840      3 289        17 
 
HEPS, therefore, increased by 15% to 1 287 cents and EPS was down 22% to 878 
cents mainly impacted by Schirm Germany's performance. 
 
The Group's cash generated from operations increased by 17% to R3 840 million 
(2021: R3 289 million). 
 
Proactive actions taken by the Group to ensure security of supply to the market 
following supply chain challenges and high raw material prices during the year, 
resulted in elevated levels of working capital. Inventory increased to R6 780 
million (2021: R4 880 million), matched by an increase of R1 985 million (2021: 
R446 million) in short-term debt. Cash available from operating activities 
decreased significantly to R77 million (2021: R1 467 million). 
 
As a result, net debt for the Group increased to R5 345 million (2021: R2 760 
million), which largely explains higher net finance costs for the year. The net 
gearing ratio for the year was 45% (2021: 24%), as expected, given the working 
capital context previously explained. The Group's long-term covenants remain 
well within the target cover range of 2.5 times earnings before interest, 
taxation, depreciation and amortisation (EBITDA), at 1.5 times EBITDA (2021: 
0.9 times EBITDA). 
 
Capital expenditure (capex) investment of R1 552 million (2021: R777 million) 
was mainly focused on organic growth. 
 
The net asset value per share attributable to ordinary shareholders increased 
by 6%, from 10 384 cents in 2021 to 11 027 cents. 
 
The Board declared a final dividend of 580 (2021: 505) cents per share which 
increased the total dividend to 774 (2021: 685) cents per share which 
represents a 13% growth. 
 
SEGMENTAL REVIEW 
 
AECI Mining achieved a record performance by growing its revenue by 51% on the 
back of strong market share gains, export growth in mining chemicals and 
increased chemical commodity prices. 67% (2021: 64%) of the segment's total 
revenue was generated outside of South Africa. Consequently, EBIT and EBITDA 
increased by 36% and 29% respectively. 
 
AECI Water grew its revenue by 31% supported by market share gains in exports 
and South Africa as well as increased sales to existing public and industrial 
sector customers. Water sustainability projects contributed 6% to revenue. EBIT 
was impacted by market sector sales mix and cost impact as a result of delays 
in price implementations at major customers due to contract pricing formulas. 
 
AECI Agri Health's revenue was up 17% to R7 067 million from R6 020 million in 
2021. The segment recorded an EBIT loss of R297 million (2021: R179 million 
profit), due mainly to the impact of the AECI Schirm business performance. 
Excluding AECI Schirm, revenue was up 19% supported by sustained higher 
commodity prices and continued strong demand following favourable climatic 
conditions, export sales as well as an increased mix of in-house formulated 
products. EBIT increased by 19% to R306 million. 
 
AECI Schirm USA, delivered to expectations with EBIT up 31% to R 101 million on 
the back of growth in sales aligned to the continued growing demand in 
agrichemicals. AECI Schirm Germany, recorded an operating loss of R228 million 
which triggered a right-of-use asset and PPE impairment of R445 million. The 
Board approved comprehensive turnaround project is expected to deliver 
commercial recovery including clearly defined milestones as well as details 
associated with the required once-off costs. Notably, high priority actions 
have been taken and we expect once-off costs to impact 2023 earnings. The Board 
expects positive earnings contribution within 20 to 36 months. 
 
AECI Chemicals increased revenue significantly by 32% on the back of increased 
demand and high commodity prices. EBIT was negatively impacted by margin 
pressure in industrial chemicals from high sulphur prices and pass through 
pricing at the customer, foreign exchange impacts in the food and beverage 
business. Good cash was delivered by the segment. 
 
AECI Much Asphalt exhibited marked improvement in performance for 2022 on the 
back higher sales volumes. Revenue increased by 37%, while EBIT increased by 
21%. 
 
B-BBEE EMPLOYEES SHARE TRUST (EST) 
 
The AECI EST, set up in 2012, was expected to vest on 9 February 2022. The 
trust held approximately 10 million B ordinary shares in AECI (7.7% of shares 
in issue) at inception. 
 
The share price growth did not meet expectations and in November 2021, the 
Board approved the extension of the EST term by an additional 12 months. An 
additional dividend of 50.5 cents per share was paid to beneficiaries on 28 
September 2022. 
 
As at the extended vesting date of 9 February 2023, the share scheme was not 
value accretive to beneficiaries and will therefore be wound up. The Group 
remains committed to driving the Group B-BBEE ownership goals. The potential 
opportunity of launching a new Black Ownership Scheme that incorporates 
learnings and improvements from the previous transaction is being considered. 
 
FUTURE FOCUS AND PROSPECTS 
 
Our strength is founded on our diversified product and service offering to 
customers across a variety of markets and countries where a strategic footprint 
has been established over time. This enables us to deliver consistent value 
sustainably to all stakeholders while leveraging the peaks and troughs of 
market cycles. All our activities remain underpinned by our ESG commitments and 
targets. 
 
High commodity price trends are expected to continue in the short term. This 
together with continued customer (new and existing) activity is expected to 
drive performance across geographies. Focus on customer centricity and the 
expansion of profitable product and service offering across the segments will 
enable customer retention and growth of sales in relevant products and 
services. Continued focus on margin improvement and working capital management 
initiatives to improve working capital release and cash generation. 
 
The growth in capital invested during the year has already contributed to new 
revenue which is expected to accelerate in 2023. 
 
Following the appointment of the new Group Chief Executive, we look forward to 
renewed vigour to drive the transformation journey which includes optimising 
returns from existing businesses. 
 
DIVID 
 
Declaration of final ordinary cash dividend no. 178 
 
Notice is hereby given that on Tuesday, 28 February 2023 the Directors of AECI 
declared a gross final cash dividend of 580 cents per share in respect of the 
financial year ended 31 December 2022. The dividend is payable on Tuesday, 11 
April 2023 to holders of ordinary shares recorded in the register of the 
Company at the close of business on the record date, being Thursday, 6 April 
2023. 
 
The last day to trade "cum" dividend will be Monday, 3 April 2023 and shares 
will commence trading "ex" dividend as from the commencement of business on 
Tuesday, 4 April 2023. 
 
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 464.00000 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 Monday, 3 April 2023. 
 
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 
Monday, 3 April 2023. 
 
Share certificates may not be dematerialised or rematerialised between Tuesday, 
4 April 2023 and Thursday, 6 April 2023, both days inclusive. 
 
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 the 
summarised consolidated year-end financial statements in accordance with 
International Financial Reporting Standards; 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 summarised consolidated 
year-end financial statements that are free from material misstatement, whether 
owing to fraud or error. 
 
AVAILABILITY OF FULL ANNOUNCEMENT AND ANNUAL FINANCIAL STATEMENTS 
 
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 is available at: 
 
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/AFE/FY2022.pdf 
 
https://www.ftp.aeciworld-online.com/pdf/annual-results/2022/ 
2022-resultsannouncement.pdf 
 
The annual financial statements including the audit opinion of the external 
auditor, Deloitte & Touche, which sets out key audit matters and the basis for 
its unmodified opinion is available at: 
 
https://www.ftp.aeciworld-online.com/reports/ar-2022/pdf/AECI2022fullafs.pdf 
 
SHORT FORM ANNOUNCEMENT 
 
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 groupcommunications@aeciworld.com. 
 
Directors: KDK Mokhele (Chairman), ST Coetzer1 (interim CE), SA Dawson2, FFT De 
Buck, WH Dissinger3, G Gomwe4, KM Kathan (Executive), P Mishic O'Brien5, AM 
Roets, PG Sibiya, A Takoordeen (Executive) 
 
1 Canadian 
 
2 Australian 
 
3 German 
 
4 Zimbabwean 
 
5 American 
 
Group Head Investor Relations: Z Salman 
 
Group Company Secretary: C Singh 
 
Board sign-off date: 28 February 2023 
 
Results released on: 1 March 2023 
 
Equity 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 
 
 
 
END

(END) Dow Jones Newswires

March 01, 2023 02:02 ET (07:02 GMT)

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