Annual General Meeting

29 July 2020

Core message

Diversification strategy proved its worth

Very strong balance sheet enables growth

Values based entrepreneurial culture is paying off

What makes Afrimat different?

Company positioning

Company culture

Strategic management

Company positioning

Primarily focused on mid-tier mining

Unique competitive advantage

Geographic location

Unique metallurgy

Structural cost advantage

Highly entrepreneurial culture

Hedged against economic volatility through wide diversification

Critical set of criteria used

when potential acquisitions

are being evaluated

Company culture

Strong operational efficiency –executing ability

The right people in the right positions

Synergistic teamwork

Customer focus

Values based entrepreneurial culture

Strategic management

Company-wide understanding of our desired ideal future

Fundamental understanding of our market

Good understanding of our own abilities

Continuous research of the business environment

Making the difficult decisions

Meticulous strategy execution

Financial discipline: making the returns

WHAT THE DIVERSIFICATION STRATEGY IS DELIVERING

Headline earnings per share (HEPS) comparison

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-- Afrimat

-- Sephaku

-- Raubex *

-- PPC *

-- CIL

*

* Interim HEPS

Growth through diversification

Glen Douglas

Clinker

Infrasors

Cape Lime

Demaneng

0

50

100

150

200

250

300

350

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Headline earnings per share Reality without strategic acquisitions

Profit history with and without acquisitions

FINANCIAL REVIEW

Financial overview

Exceptional cash generation

Strong quality of earnings across group

Continued focus on astute capital allocation

Financial overview

Group revenue

increased to

R3,3bn

HEPS increased to

347,7 cps

Operating profit

margin

11,4% 48,5% 18,2%

Return on net

operating assets

Net debt:equity

ratio improvement

from 23,8%

30,9% 8,2%

Operating profit (R’000)

Financial overview

1 0

03 2

37

1 1

53 2

58

1 1

84 5

92

1 4

34 8

50

1 7

19 8

02

966 5

49

1 0

74 8

99

1 1

96 4

02

1 5

31 5

49

1 5

84 5

74

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

2016 2017 2018 2019 2020

1st half 2nd half

159 6

23

206 1

52

194 2

44

202 6

69

317 9

931

60 7

65

203 4

92

157 2

94

268 4

83

282 9

59

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

2016 2017 2018 2019 2020

1st half 2nd half

11,4%

Con

trib

ution f

rom

op

era

tions m

arg

in 1

8,2

% (

20

19

: 1

5,9

%)

Revenue (R’000)

Revenue and operating profit

27,5%

31%

16%

53% 2020

Contribution from operations

59%18%

23%

201952%

17%

31%

2020

Construction Materials

Industrial Minerals

Bulk Commodities

Revenue

40%

17%

43%

2019Operating

profit

Total dividend

CAGR of 19,7%

2016 - 2020

Cen

ts p

er

sh

are

57

70

62

81

117

-

20

40

60

80

100

120

140

2016 2017 2018 2019 2020

Record date:Friday, 4 Sept. 2020

Dividend payable:Monday, 7 Sept. 2020

Dividend – 2.7x cover

Margin improvements

Operating profit margin (%) FY2020 FY2019

Construction Materials 11,2% 10,9%

Bulk Commodities 31,0% 29,5%

Industrial Minerals 17,3% 14,3%

Overall 18,2% 15,9%

Headline earnings per share – full yearC

ents

per

share

15

6.6 19

6.4

18

0.7 23

4.1

34

7.7

0

50

100

150

200

250

300

350

400

2016 2017 2018 2019 2020

CAGR - 22,05%

(2016 – 2020)

Net cash from operation activities – full year

R‘000

CAGR of 20,56% (2016 – 2020)

32

6 5

36

20

0 9

60

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

2016 2017 2018 2019 2020

79

51

0

320 339

406 046410 484

676 810

280 470

79

51

0

Statement of financial position - assets

R’000Audited

Feb 2020

Audited

Feb 2019

Property, plant and equipment 1 571 519 1 469 837

Intangible assets 210 226 221 873

Inventories 260 526 261 249

Trade and other receivables 476 356 435 458

Cash 167 533 191 763

Other assets / deferred tax 109 102 106 832

2 795 262 2 687 012

Statement of financial position – equities & liabilities

R’000Audited

Feb 2020

Audited

Feb 2019

Total equity 1 688 907 1 409 517

Borrowings 295 832 383 546

Provisions 152 748 141 080

Overdraft 20 134 153

Trade and other liabilities 421 072 390 517

Other liabilities / deferred tax 236 683 228 199

2 795 262 2 687 012

Debt:equity ratio improved to 8,2% (2019: 23,8%) at year-end

Debt:equity ratio improved further during F2021 Q1 – enabling dividend payment

Lessons learned

Value determined by the weakest link in value chain

Expect the unexpected (e.g. COVID-19)

Only the best people are good enough

Don’t trust the spreadsheet or the budget

Don’t sail too close to the wind

Cash is king – make it soon

DO NOT OVERPAY FOR ACQUISITIONS

OUR MARKET

Bulk commodities

Iron ore

Iron ore market overview

World production of usable ore: 2.5 billion tons

World seaborne trade about 1.467 billion tons p.a.

China’s imports about 72% of seaborne trade

South African production: about 70 million tons p.a.

Production of 1 ton of crude steel requires 1.4 ton of ironore and 0.8 ton of metallurgical coal

World steel production: 1.87 billion tons

China: 996.3 million tons

India: 111.2 million tons

Japan: 99.3 million tons

Impact of COVID-19

Hard lockdown in China January/February

Increased imports due to domestic travel ban Market tilted towards Construction and Infrastructure

Significant impact in Europe

Construction and automotive about 50% of steel consumption All major European car manufacturers halted in March 2020 –

withdrawing 61 000 vehicles per day

IMF warned that global economy could endure steepestdecline since the Great Depression

Global GDP could shrink by 3% in 2020

Iron ore price remains remarkably strong

Iron ore pricing

Seaborne pricing driven by Chinese production of pigiron

Grew in 2019 from $75/t to $125/t: Average $93/t

Currently trending higher: Average for July $107,7 tonagainst $83,84/t in April

Record levels in Rand terms

Fitch forecast average of $90/t in 2021

Realized price influenced by various quality premiums

Pricing influences

Daily iron ore price (as per the Plats

Index)

Lumpy premium

Logistics cost to harbour

Marketing costs (US$)

Exchange rate (R/$)

Quality adjustments based on silica, aluminium

and manganese content

Shipping costs

1. Preliminary payment when delivered to Saldanha

2. Final price determined after 3 months (arrival in China)

3. Difference on final price adjusted to subsequent

preliminary payment

Payment arrangements

Iron ore sales by rail

(*) Planned Transnet maintenance shut down

*Stable monthly sales expected to settle at 72,500

22

71

5

28

62

9

26

81

3

30

64

3

30

28

2

45

74

3

45

39

2

45

22

5

45

75

8

57

17

2 65

24

4

58

46

3

75

28

1

53

39

5

65

00

4

64

98

2

41

47

0

64

17

5

70

79

4

64

89

3

64

85

2

67

86

3

67

81

1

68

38

4

10

2 8

28

68

78

5

57

30

9

92

16

2

34

76

3

69

70

2

92

67

3

57

62

3

46

43

7

69

58

2

68

18

9

81

18

9

-10 000

10 000

30 000

50 000

70 000

90 000

110 000

Au

g-17

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-19

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

Jul-

20

Sales (tons)

Construction materials

Aggregates

Bricks & blocks

Readymix concrete

Afrimat Construction Index – Q1 2020

Index; Q1 2011=100

4Q average

95

100

105

110

115

120

125

130

Q1'13 2 3 4

Q1'14 2 3 4

Q1'15 2 3 4

Q1'16 2 3 4

Q1'17 2 3 4

Q1'18 2 3 4

Q1'19 2 3 4

Q1'20

Contribution of construction to GDP (both at 2010 prices)

(Source: Stats SA, P0441, 5 March 2019 and 3 March 2020).

3.4%3.4%

3.5%

3.5%

3.5%

3.6%

3.5%

3.4%

3.3%

3.2%

3.2%

3.3%

3.3%

3.4%

3.4%

3.5%

3.5%

3.6%

3.6%

2011 2012 2013 2014 2015 2016 2017 2018 2019

Growth rate of GDP and the growth rate of Construction(both at 2010 prices)

(Source: Calculated from Stats Sa, P0441).

2.21%2.49%

1.85%

1.19%

0.40%

1.41%

0.79%

0.15%

2.58%

4.57%

3.49%

1.84%

1.18%

-0.58%

-1.23%

-3.26%-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2012 2013 2014 2015 2016 2017 2018 2019

GDP) Construction

Construction materials: COVID-19 impact

Complete lockdown under level 5 – no revenue for April2020 (painful)

Partial re-opening under level 4 – sales volumes around40% of previous year (still painful)

Gradual recovery under level 3 – activity levelsapproaching F2020 levels

Demand spike in some areas – contractors catching upafter lockdown and “Post-COVID-19” start-up delays

Good volumes expected for H2

Presidential Infrastructure Coordinating Commission Council

Gazetted: 24 July 2020 – projects identified:

Water and sanitation (R106bn)

Energy (R58bn)

Roads (R47bn)

Human settlements (R138bn)

Strategic Integrated Projects

“…recovery should be led by infrastructure development and

maintenance” - Cyril Ramaphosa

Industrial minerals

Limestone

Dolomite

Industrial minerals: COVID-19 impact

Minimal activity under level 5 – only water purificationand fire retardant markets (painful)

Partial re-opening under level 4 – sales volumesremained disappointing

Gradual recovery under level 3 – activity levels remainbelow F2020 levels

Glass bottle market impacted by alcohol ban

Industrial minerals: Prospects

Specialised and niche applications are gaining traction(lime based paint, resin lime, fluid lime, fillers)

Increased demand for oxide and hydrated materials(e.g. fluid lime for heavy minerals industry)

Steel, chemical and plate glass markets expected toreturn gradually from August

Import replacement products gaining traction

Return to reasonable margins expected in H2

SUSTAINABILITY

Human resource developmentCategorization spend (R’000)

R35,4 million (2019: R27,4 million) spent on skills development, bursaries, learnerships and internships for the year

78,4% of this expenditure was in respect of historically disadvantaged employees

R 907

R 14 818

R 11 303

R 5 826

R 2 574

Bursary/study loansTraining costsSkills development department costLearnershipsInternship remuneration

FY 2020

R 774

R 13 191

R 6 117

R 4 318

R 2 995

Bursary/study loansTraining costsSkills development department costLearnershipsInternship remuneration

FY 2019

Community development Categorization spend (R’000)

R4 925 (R3 236) spend towards LED projects during the year

R616

R356

R2 243

R1 703

R7

FY 2020

Art, Sports & Culture (12,5%) Basic Needs (7,2%)

Education projects (45,5%) Uplifting community (34,6%)

Skills development (0,2%)

R172 R442

R1 205

R1 275

R142

FY 2019

Art, Sports & Culture (5,3%) Basic Needs (13,7%)

Education projects (37,2%) Uplifting community (39,4%)

Skills development (4,4%)

Afrimat culture

THE FUTURE

Unicorn Capital Partners

Conditional final offer made for remaining 73%

Short term focus to meet conditions in terms ofapprovals and agreements

Implementation expected by Q3 of F2021

Medium term focus to turn business around:

Nkomati ramp-up to reliably sell 40 000 tpm

Evaluate other business in terms of potential and strategic fit

Excited about Nkomati’s strategic fit

Prospects

Iron Ore expect to remain good contributor

Average iron ore price expected around $85/t for H2,good quality premiums expected

Construction Materials expect good volumes for H2

Industrial Minerals expect marginally lower volumes inH2 compared to H2 F2020

Strong cash

Implementation of UCP transaction

Expansion of iron ore resource base

Core message

Diversification strategy proved its worth

Very strong balance sheet enables growth

Values based entrepreneurial culture is paying off

Q & A

Thank you for your attendance and participation

For any further Investor Relations questions please contact:

Andries van Heerden (CEO) 021 917 8840

Vanessa Rech (Keyter Rech Investor Solutions) 087 351 3814