THE AECI GROUP

AN INTRODUCTIONStandard Bank Africa Investors' Conference

London, 25 and 26 June 2014

DISCLAIMER

Forward looking statementsThis presentation has been prepared by AECI Limited. The information contained in this presentation is forinformational purposes only. The information contained in this presentation is not investment or financial productadvice and is not intended to be used as the basis for making an investment decision. This presentation has beenprepared without taking into account the investment objectives, financial situation or particular needs of anyparticular person.No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness orcorrectness of the information, opinions and conclusions contained in this presentation. To the maximum extentpermitted by law, none of AECI Limited, its Directors, employees or agents, nor any other person accepts anyliability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the useof the information contained in this presentation. In particular, no representation or warranty, express or implied, isgiven as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of anyforecasts, prospects or returns contained in this presentation. Such forecasts, prospects or returns are by theirnature subject to significant uncertainties and contingencies.Before making an investment decision, you should consider, with or without the assistance of a financial adviser,whether an investment is appropriate in light of your particular investment needs, objectives and financialcircumstances. Past performance is no guarantee of future performance.

Non-IFRS informationThis presentation makes reference to certain non-IFRS financial information. Management use this information tomeasure the operating performance of the business and has been presented as this may be useful for investors.This information has not been reviewed by the Group’s auditor.

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PRESENTATION STRUCTURE 2

› Overview

› Brief history

› AECI today

› Portfolio and strategies◦ AEL Mining Services: Africa’s leading explosives supplier◦ Specialty chemicals cluster: 14 value-adding specialty

chemicals and services businesses◦ Property: Modderfontein bulk sale completed March ’14;

portfolio consolidated

› Outlook and drivers

1OVERVIEW

EXECUTIVE DIRECTORS

Mark DytorChief Executive

Appointed: 1 March 2013

In addition to his responsibilities as CE, Markhas retained a portfolio of Chairmanships at companies in AECI’s specialty chemicals cluster and has led the Company’s growth thrust in mining chemicals.

He was appointed to AECI’s Executive Committee in 2010 and to its Board in January 2013.

Mark KathanCFO

Appointed: 1 September 2008

Mark is responsible for the Group’s finance and treasury functions. He also oversees the Group’s Communications and Investor Relations, Legal and Secretariat, Internal Audit and IT Services as well as retirement funds.

He is Chairman of SANS Technical Fibers.

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A SA-BASED EXPLOSIVES AND SPECIALTY CHEMICALS COMPANY

› Explosives and specialty chemicals

› Specialty product and services Group of 16 companies

› Value-adding solutions through science, technology, industry knowledge, service excellence, customer-centric focus

› Key earnings drivers: mining and manufacturing

› Strategic growth pillars: mining solutions (international); water solutions, agriculture and food additives (Africa)

› 6 279 employees

› Domiciled in SA; JSE Limited-listed

› Focused regional growth strategy

› Revenue: R15,9bn

› Market cap: R16,03bn (Dec ’13)

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Focused on regional growth internationally and in Africa

2013 REVENUE SPLIT IN THIS CONTEXT

▃▃▃ 45% Explosives ▃▃▃ 16% Mining chemicals▃▃▃ 12% Agriculture▃▃▃ 23% Manufacturing▃▃▃ 4% Property

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GROUP MINING REVENUE IN 2013

Revenue by mineral mined

▃▃▃ 23% Platinum▃▃▃ 21% Copper, cobalt, chrome, nickel▃▃▃ 16% Gold▃▃▃ 11% Diamond▃▃▃ 8% Coal▃▃▃ 4% Uranium▃▃▃ 4% Iron ore▃▃▃ 1% Phosphate▃▃▃ 12% Other

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2013 SPECIALTY CHEMICALS REVENUE 8

Revenue by market sector

1

1

11

1

2

▃▃▃ 31% Mining▃▃▃ 23% Agriculture▃▃▃ 8% Food and beverage▃▃▃ 5% Chemical industry▃▃▃ 5% Oil and refining▃▃▃ 5% Detergents▃▃▃ 4% Textiles and leather▃▃▃ 4% Toiletries, cosmetics

and pharmaceuticals▃▃▃ 3% Plastics and rubber▃▃▃ 3% Paper and packaging▃▃▃ 2% Coatings, ink

and adhesives▃▃▃ 7% Other

1% Steel and metals

1% Construction

1% Engineering and foundry

1% Automotive

1% Appliances and furniture

2% Various other

SHARE PRICE 9

SA cents

2BRIEF HISTORY

BRIEF HISTORY 11

BRIEF HISTORY 12

› Roots to 1894 – a Nobel dynamite company at Modderfontein, near Johannesburg

› Registered as a company in 1924 and listed since 1966; majority ownership/control by ICI and Anglo American for most of its existence

› Evolved into typical chemical conglomerate and then restructured significantlyafter SA’s readmission into the global economy in 1994

› No majority control now; focused, specialised businesses and expanding with adequate B-BBEE ownership

› Embarked on a R2bn capital expenditure programme in ’07. Plants completeand profit optimisation underway

› Restructured in ’10: all businesses (currently 16) report into a single Executive Committee, and ultimately to the AECI Board

› AECI brand revamped and relaunched

3AECI TODAY

CURRENT GROUP STRUCTURE

Freedom supported by a framework

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FREEDOM SUPPORTED BY A FRAMEWORK 15

At the heart of the corporate strategy

GROUP VALUES 16

GOVERNANCE 17

Open ’14 = R10,50

Peak = R11,30

EXTERNAL PERFORMANCE DRIVERS: CURRENCY 18

ZAR/US$ exchange rate

2012 Average = R8,20

2013 Average = R9,63

Open ’13 = R8,49

Jan – April ’13 = R8,93

Jan – April ’14 = R10,77

Source: I Net Bridge

EXTERNAL PERFORMANCE DRIVERS: CURRENCY CONT.

› ZAR/US$ depreciated by 21% yt-April ’14 vs yt-April ’13

› 33% of Group revenue is predominantly US$ denominated

◦ Forex benefits being realised as the Group moves out of SA

› Rand weakness has boosted revenue, but rand margins under pressure owingto prevailing trading conditions in SA

› Raw materials mainly imported or priced at import parity

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Effects of the exchange rate on performance

EXTERNAL PERFORMANCE DRIVERS: BUSINESS ENVIRONMENT 20

SA mining volumes Jan ’09 – Mar ’14

Base: 2010 = 100 Source: StatsSA

y-o-y = -4,7%

EXTERNAL PERFORMANCE DRIVERS: BUSINESS ENVIRONMENT CONT.

› In SA

◦ Increase in demand from opencast mining

◦ Longest-ever strike (152 days) has affected stability in the sector

» Officially ended 24 June ’14

◦ Decline in demand from narrow reef mining

» Lower gold and platinum prices

» Cost pressures

› Increased mining activity in the rest of Africa from existing customers andnew mining projects

› Low gold price has forced African customers to target high grade sections

› Heightened international competition for market share in Africa

› Lower thermal coal prices still tempering growth in Indonesia

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Effects of mining environment

EXTERNAL PERFORMANCE DRIVERS: BUSINESS ENVIRONMENT CONT. 22

SA manufacturing volumes Jan ’06 – Mar ’14

Base: 2010 = 100 Source: StatsSA

y-o-y = 0,7%

EXTERNAL PERFORMANCE DRIVERS: BUSINESS ENVIRONMENT CONT.

› Weak demand impacts margin and volume growth

› No significant improvement in exports by customers

› Customers rationalising and reducing production capacity due to cost competitiveness factors

› No major investment in SA manufacturing sector

› Heightened international competition for market share in SA and the rest of Africa

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SA manufacturing sector growth subdued, still below GDP growth

SAFETY, HEALTH AND ENVIRONMENT 24

› Best-ever TRIR of 0,52 in ’13 (0,53 in ’12)

› Group-wide roll-out of Process Safety Management practices in process

› Included in JSE’s Socially Responsible Investment Index for fifth successive year

› Participate in global Carbon and Water Disclosure Projects

› Group-wide environmental improvement programme – Green Gauge – focuses on water and energy consumption, and waste generation

› Environmental remediation liability fully provided for at R171m

Performance and management

’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13

Revenue R10,2bn R8,5bn R12,9bn R10,7bn R11,6bn R13,4bn R13,8bn R15,9bn

Profit from ops R1 102m R807m R1 035m R767m R1 062m R1 316m R1 197m R1 398m

RONA (%) 24,8 16,5 16,9 12,6 15,9 18,1 16,7 17,3

Employees 7 700 7 120 6 450 6 330 6 800 7 141 6 750 6 279

Market cap R8,2bn R9,5bn R6,1bn R7,4bn R9,8bn R9,8bn R10,2bn R16,03bn

Notes Large property disposal

Excluding closed

ops

Excluding closed

ops

Global recession

Recovery from

recession

Strong rand

B-BBEE IFRS 2

charge. Restated to equity account for joint

ventures

FINANCIAL PERFORMANCE HISTORY 25

PERFORMANCE SUMMARY FOR 2013 26

› Revenue +15% to R15,9bn

◦ Foreign revenue of R5 224m = 33% of total (20% increase in ’13)

› Headline earnings +57% to R885m

› Profit from operations +17% to R1 398m

› EPS +63% to 845c, HEPS +57% to 791c

› 8,8% trading margin (8,7% in ’12)

› Final cash dividend of 210cps declared

› Total cash dividend for ’13 +20% to 315cps

PERFORMANCE SUMMARY FOR 2013 27

› Improved performance from AEL notwithstanding R84m retrenchment charge

› Excellent performances from Senmin and property segment

› Foreign exchange gains owing to the weakening of the rand

› Non-recurrence of the R138m (123cps) non-cash IFRS 2 charge associated with the CST component of B-BBEE transactions effected in ’12

◦ HEPS excluding IFRS 2 above = +26%

› Higher selling prices and exchange rate effects boosted revenue

› More stable SA mining sector than in ’12

› Proceeds from Shanghai Zendai for bulk property sale transaction not included. R1,06bn (incl. VAT) in cash received 20 March ’14

Driven by

PERFORMANCE SUMMARY FOR 2013 28

› Weak demand impacted margin and volume growth

› No significant improvement in exports by customers

› Customers rationalising and reducing production capacity due to cost competitiveness factors

› No major investment in SA manufacturing sector

› Heightened international competition for market share in SA and the rest of Africa

SA manufacturing sector growth subdued, below GDP

PROFIT FROM OPERATIONS BY SEGMENT (RM) 29

(350)

(250)

(150)

(50)

50

150

250

350

450

550

650

750

850

950

Explosives Specialty chemicals Property

Corporate

4STRATEGY AND PORTFOLIO

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STRATEGY

Strategy

› Focus on:

◦ International mining solutions (explosives and chemicals)

◦ Water solutions, agriculture and food additives in Africa

› Maintain a solid portfolio of specialty chemicals businesses in SA

› Pursue acquisitions in markets of interest

› Accelerate the realisation of value from Somerset West land holdings

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SA-based explosives and specialty chemicals company with regional and international businesses in Africa and SE Asia. Other markets of interest are Australia and Latam

MINING SOLUTIONS: INTERNATIONAL FOOTPRINT 32

EXPLOSIVES 33

MINING CHEMICALS 34

STRATEGIC DELIVERY: MINING SOLUTIONS 35

› Mining solutions

◦ AEL and Senmin negatively affected by platinum industry strikes

◦ Expansion outside SA, across commodities and mining methods has de-risked AEL

◦ New explosives plants in Burkina Faso, DRC and Egypt fully operational

◦ BBRI ANS plant (Indonesia) in full production by August ’14

◦ Senmin expanding outside SA by leveraging AEL footprint

◦ AECI Group offices established in Australia and Brazil in support of internationalisation

GROWTH PILLAR: MINING SOLUTIONS CONT.

› International (Africa, Indonesia, Latam, Australia and China?)

› Mining explosives and chemicals business : AEL, Senmin and Lake’s Experse

◦ Substantial market size

◦ Core businesses

◦ Customer service and value-add model

◦ In-house IP and R&D

◦ Backward integration and manufacturing

◦ International acquisition opportunities

◦ Leverage footprint and back office support

◦ AN plant capacity investment

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AEL MINING SERVICES

› Africa’s leading supplier of explosives, initiating systems and value-adding services

› Bulk explosives plants – Africa and Indonesia

› Presence in 23 countries

› Throughout African continent

› Expanding into selected developing markets

› DetNet: global JV in electronic detonators with Dyno Nobel

› Phased investment in 42,6% minority equity share in BBRI, an ammonium nitrate plant in Indonesia, for US$23m

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3527 28 25

20 17 16

3336

31 3333 34 33

32 37 41 43 47 49 51

0%

20%

40%

60%

80%

100%

07 08 09 10 11 12 13

AEL CONT.

› Portfolio reflects AEL’s growth beyondSA and the narrow reef undergroundgold and platinum mining sectors,in line with strategy.

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Revenue split

▃▃▃ SA Underground▃▃▃ SA Surface▃▃▃ Outside SA

SPECIALTY CHEMICALS: AFRICAN FOOTPRINT 39

STRATEGIC DELIVERY 40

› Water solutions◦ Benefits of GE acquisition emerging

◦ Clariant acquisition approved by Competition Tribunal (effective 1 July ’14)

◦ African footprint will be enhanced

◦ Largest industrial, effluent and municipal water treatment chemical company in Africa

› Agriculture◦ SA Premix acquired in ’13

» Merged with Chemfit

» Strong start to ’14 from Nulandis in SA and African export markets

◦ More acquisitions being investigated in Africa

› Food additives◦ Enter new market sectors

◦ More acquisitions being investigated in SA

STRATEGIC DELIVERY 41

› Lake International split into Lake Foods and Lake Specialties

› Infigro moved to Lake Foods

› Industrial Urethanes moved to Lake Specialties

› SANS included in specialty chemicals cluster; being prepared for possible disposal

› Chemisphere divisionalised into ChemSystems from January ’14

› Akulu restructuring – disposal of PJ division; white oils business moving to IOP

› Pigments portfolio moved from Lake Specialties to Chemfit

› Possible disposal of ImproChem’s Spotzero (hygiene and sanitation)

› Portfolio review is an on-going strategic management process

Specialty chemicals portfolio management: ’13 and ’14 ytd

SPECIALTY CHEMICALS CLUSTER 42

14 businesses

Akulu Marchon

Chemfit

Chemical Initiatives

Resinkem

Senmin

SANS Technical Fibers

Specialty Minerals SA

Nulandis

ChemSystems

Crest Chemicals

ImproChem

Industrial Oleochemical Products

Lake Specialties

Lake Foods

5OUTLOOK ANDUNDERLYING GROWTH

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OUTLOOK

› Mining in Africa is expected to be buoyant

› Ramp-up of BBRI AN plant bodes well for the Indonesian business

› Promising growth prospects for the SA iron ore and coal sectors

› AECI is well placed to enter new countries in its markets of interest

› Outlook for global economy and commodity prices remains uncertain

› Negative effects of unprecedented strikes in SA platinum mining industry

› No indication of a step-change in the growth rate of SA’s manufacturing sector

› Further restructuring costs can be expected as part of value optimisation and strategic portfolio management

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DELIVERABLES

› Expand AECI’s geographical footprint in Africa as well as in Australia and Latam

› Drive the Group’s holistic approach to its mining solutions strategy

› Ramp up BBRI AN plant to capacity

› Maintain focus on improving AEL’s performance to achieve >10% operatingmargin in ’15

› Continue to pursue strategic acquisitions

› Maintain the focus on costs and margins

› Finalise discussions with AECI Pension Fund regarding de-risking ofdefined-benefit fund

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THANK YOU