AECI LimitedPresentation to Investors and Media 22 and 23 February 2005

SummarySolid performance of portfolio against background of relatively strong commodity prices and strengthening rand exchange rate, accompanied by low inflation and interest ratesHeadline earnings increased by 10 per cent to new record of 392 cents per shareHeadline earnings include restructuring charges equivalent to 27 cents per shareSound balance sheet; excellent working capital management and prudent capital expenditure continuesVolumes, in aggregate, higher but selling prices marginally lower

SummaryOutstanding performance from property activitiesTrading margin at 9.4% the best in recent historyEncouraging response to strong rand environment; actions across Group Implemented economic empowerment transaction in AELDetNet joint venture now operationalCSL back on acquisition trailSANS recovery strategy on track

SHE performance

Chart1

0.911

0.681

1.511

0.291

0.831

0.25

0.58

0.64

0.66

0.68

0.96

0.98

1

1.02

1.03

1.06

1.12

1.28

1.28

1.34

1.65

1.7

1.71

1.89

2.01

2.1

2.13

2.4

Total Reportable Incident Rate

Target

TRIR

2004 Total Recordable Incident Rate

Data

Comparison of accident/illness statistics

from some selected international companies

(N.B. AECI data to end 2003)

CompanyYearTotal Reportable Incident RateLost Time Incident RateTRIR target

AECI040.910.481

AEL040.680.501

Chemserve041.510.681

Dulux040.290.001

SANS040.830.411

Huntsman030.25

Dow030.58

Rhodia030.640.28No health

Orica Group040.66

Shell Chemicals030.68

PPG (US)040.96

Omnia040.98

Monsanto031.00

BASF Corp031.02

Sasol Group041.03No health

Ciba Spec Chem031.06

Bayer Corporation041.12

Nalco031.28

Great Lakes Chem Corp031.28

Arch Chemicals031.34

WR Grace & Co031.65

Bayer Chemicals031.700.48

Kemira Chemicals031.71

DuPont031.89

Ashland Spec Chem032.01

Georgia-Pacific032.10

Degussa Corp032.13

Akzo-Nobel Chem (US)032.40

CompanyYearLost Time Incident Rate

AECI040.48

AEL040.50

Chemserve040.68

Dulux040.00

SANS040.41

Afrox020.17

Aventis Pharma030.42

Akzo Nobel030.56

BASF030.48

Bayer Chemicals030.48

Bristol-Myers Squibb030.34

Ciba Spec Chem030.46

Croda030.86

Degussa011.44

Eastman020.23

General Electric030.40

GlaxoSmithKline030.60

Henkel031.20

Johnson & Johnson020.08

Novartis030.60

Orica030.28

Pfizer011.50

Rhodia030.28

Rockwood Specialities030.85

SAB-Miller03/041.20

SAB-Miller (Africa)03/040.70

Solvay020.84

Umgeni Water02/030.79

Other CompaniesYearTRIR

3M032.35

Air Products (US)030.61

Alcoa031.69

Astra-Zeneca031.06

Aventis Pharma030.68

BP031.00

Bristol-Myers Squibb031.03

General Electric031.50

GlaxoSmithKline030.94

ICI030.93

Norsk-Hydro031.40

Sasol Mining Ops031.65

Shell030.46

Basell030.40

Procter & Gamble Chem030.54

Occidental Chem Corp030.71

Rohm & Haas031.05

Eastman031.190.13

Olin Corp031.75

TRIR Graph

The health and safety data for the companies above was extracted from their websites. The data is mostly from their 2003 reports with

a few from 2004 and only one (Eastman) being from 2002.

Due to minor variations in the reporting formats, the Total Recordable Incident Rate in some cases has had to be recalculated to provide

uniformity with the OSHA standard system i.e. "number of occupational illnesses and injuries requiring more than first aid treatment

per 200 000 hours".

It is interesting to note that over the last few years there is a greatly increasing number of international companies who have seen

the merit in publicly reporting their health and safety performance using the OSHA total recordable incident system.

TRIR Graph

0.911

0.681

1.511

0.291

0.831

0.25

0.58

0.64

0.66

0.68

0.96

0.98

1

1.02

1.03

1.06

1.12

1.28

1.28

1.34

1.65

1.7

1.71

1.89

2.01

2.1

2.13

2.4

&A

Page &P

Total Reportable Incident Rate

Target

TRIR

2004 Total Recordable Incident Rate

LTIR Graph

LTIR Graph

0.27

0.21

0.55

0

0.06

0.17

0.42

0.56

0.48

0.48

0.34

0.46

0.86

1.44

0.23

0.4

0.6

1.2

0.08

0.6

0.28

1.5

0.28

0.85

1.2

0.7

0.84

0.79

Lost Time Incident Rate

Rate (per 200 000 hrs)

Lost Time Incident Rate

Compare with similar businesses

CompanyYearTotal Reportable Incident Rate

AECI030.91

Dow020.58

DuPont021.89

ICI020.93

Orica Group030.66

Sasol Group031.03

Shell020.46

AEL030.68

Sasol Mining Ops031.65

Bristol-Myers Squibb031.03

Chemserve031.51

Ashland Spec Chem032.01

Bayer Chemicals031.70

000.00

Dulux030.29

SANS030.83

DuPont021.89

CompanyYearLost Time Incident Rate

AECI030.48

BASF030.48

Orica020.28

SAB-Miller (SA Beer)01/021.20

Shell01/020.70

Umgeni Water010.79

AEL030.50

Chemserve030.68

Bayer Ind Chem020.48

Dulux030.00

SANS030.41

Compare with similar businesses

0

0

0

0

0

0

0

TRIR

Corporate

Graph vs selection

0

0

0

0

Explosives

TRIR

Speciality Chemicals

0

0

Coatings

TRIR

0

0

Fibres

TRIR

0

0

Explosives

TRIR

2.60Median1.30

2.10Low0.45

2.22High2.60

0.68

0.48

1.70

0.97

0.58

1.55

1.18

1.65

2.00

1.94

0.45

0.56

1.40

1.40

1.60

0.94

1.22

0.74The total recordable incident rates were obtained from the published health and safety reports of a

1.30selected group of 20 well-known local and international companies. The companies selected were

1.65chosen primarily because they report their health and safety performance in the same format as

1.08used by AECI (as defined by the American Occupational Safety and Health Administration). We

0.94also selected relatively large companies that were in similar industry sectors as AECI businesses.

The group includes most of the companies that are generally regarded as leaders in the health and

safety field.

The latest reported rates were used. These are mostly for the year ending 2002 but there are a few

whose figures are for 2001 and 2003. All the AECI statistics are for the year ending 2003.

Although this exercise can not be regarded as statistically valid, we believe it does give credence

to our claim of achieving a 'world-class' health and safety performance last year.

0.91

0.68

1.51

0.29

0.83

TRIR

AECI vs Selected Group of Companies

Median

Highest

Lowest

Business environmentLow inflation and interest rate environment prevailedThis resulted in strong consumer-driven demand, such as retail, housing and automotiveCommodity prices including oil remained high, but strong currency restricted inflationary pressures The local manufacturing industry is progressively addressing the global competitive environment through productivity measures, cost cutting, aggressive purchasing policies and product rationalisationOpportunities for sales price adjustments ahead of cost increases diminishedCertain raw materials became scarce and prices fluctuated and increased sharply

Chemical industryGlobal industry no benchmark for AECI; we are portfolio of customer focused specialty product and service solutions businesses, operating in global and regional niche marketsGlobal industry remains in better shape with improved demand and commodity prices Prolonged high cost of natural gas and roller coaster crude oil prices and supply and demand imbalances play havoc with resultsChina is an increasing factor in demand and supply for a vast range of products, and an investment base for multinationals

Results for 2004 HEPS +10%Volumes +4%TP Margin 9.4% (9.0%) TP increased by 8%Exports +2% in rand but +19% in dollars Headline earnings per share: centsTrading margin: per cent

Solid results due to:Robust portfolio: specialised, value add, customer focus, diversified (contribution margins stable)Volumes maintained: local economy soundQuality properties available when demand improvedSANS stemmed the rand strength effectExcellent balance sheet management

FinancialNet borrowings R633m, gearing 24% Capital expenditure R277mWC 12% at year-endCash interest cover improved to 7 timesExceptional charge R23m; includes impairment in Botash and closure of resin plant offset by sale of IP to DetNet Finance charges include R13m mark-to-market adjustments

Share price Relative rating to industrials (at year end) declined from recent trend; but has improved in January Graph adjusted for R6 special dividend (November 1999)

Economic empowerment

The R1.6billion AEL/Tiso transaction now operational. Tiso participates at strategic level. AEL community trust establishedSelective investigation in CSL continues, and good progress with first empowered transaction at subsidiary level

Segmental trading profit (Rm)Includes R33m restructuring

Group EVA (Rm)Calculated at WACC of 15% for 97 to 03 and 14% for 04

EVA by business (Rm)Includes goodwill at cost

Mining solutionsRevenue R2 140m (+3%); TP R212m (-12%)Margin 9.9% (11.5%)Trading profit before restructuring charge is R245m (+2%) and margin unchanged at 11.5%Restructuring: R33m charge recognised in period and 130 people retrenchedSignificant progress made in restructuring the business and footprint reduction nearly complete. Also, new investments in packaged Anfex and bulk explosives plants brought on line in Modderfontein. Automation programme on track.

Mining solutionsVolumes down due to decline in gold mining, importation of Chinese Shocktube and industrial action on platinum mines in H2, somewhat offset by growth in West AfricaImports of state-subsidised initiators from China continues although penetration in to South Africa slower than anticipatedAfrican markets stable, except Zimbabwe where competitor attack destroyed valueOpportunity for PPAN exports to Australia

Mining solutionsDetNet progressJoint venture approved and in operationDevelopment and testing of first new product (HotShot) completedFirst HotShot product has now in USA and is undergoing proving trialsPresentation on mining solutions and property activities on Friday, 15 April at Modderfontein

First shipment ofHotShot to USA

Specialty chemicalsRevenue R3 302m (+3%); TP R380m (+2%)Margin 11.5% (11.6%) Maintained high trading margin trend, to validate robust specialty chemical modelCompany performances in portfolio ranged from pedestrian to brilliant Rand strength put pressure on prices and export-driven customers

Specialty chemicalsMining chemical cluster established, with high service package and local production key initiatives AECI Coatings returns improved; alternative broad supplier technology strategy implemented, resin manufacturing closedAcquisitions: First Chemicals (chemical trading) from August, UAP (distributor of specialty agro-chemicals) in January 2005 and Chemiphos (producer of food-grade phosphates) subject to regulatory approvals

Specialty chemicalsDiversified portfolio

Chart 2003

0.1602208105

0.1188238461

0.0905424608

0.0689749561

0.0805868537

0.0730987255

0.0603528595

0.0571150692

0.0518100953

0.0424276796

0.0388492446

0.0368738079

0.0576876551

0.0266989769

0.0199778293

0.0178788522

0.0138931575

0.0120246076

Group Sales by Industry Segmentation 2003

2003

Customer Class

SECTORAECI CoatingsAkuluChemicalCS PerliteCS SystemsCrestDussekImprochemIOPIndustrialLakePM&CCPelichemPlastamidPlaaskemResinkemSAPCSenminSMSATotal

InitiativesChemicalsUrethanes

Mining$4,435$73,623$7,224$32,000$5,915$100,505$32,276$20,000$106,200$5,943$141,018$529,13916%

Paper and packaging$59,000$930$39,804$5,000$13,000$6,046$3,422$5,270$3,996$229,048$604$26,303$392,42312%

Chemical Industry$1,925$45,820$22,764$12,000$67,501$100,007$17,734$30,165$1,106$299,0229%

Detergents$81,192$25,665$40,631$1,388$8,400$70,518$227,7947%

Automotive$202,500$4,000$1,100$21,000$37,543$266,1438%

Plastics & Rubber$18$99$72,000$2,938$2,349$14,681$143,000$6,328$241,4137%

Coatings Ink & Adh.$21,700$564$31,826$146$33,327$73,056$17,000$21,700$199,3196%

Agriculture$40,805$1,411$1,000$12,379$2,312$130,000$719$188,6266%

Food & Beverage$3,767$4,271$32,019$52,781$39,168$39,100$171,1065%

Appliances and furniture$9,400$7,358$112,000$11,362$140,1204%

Construction$1,975$250$1,044$12,267$6,027$14,000$30,967$61,772$128,3024%

Engineering and foundry$3,224$310$20,000$22,511$1,695$24,038$50,000$121,7784%

Toiletries, cosmetics and Pharmaceuticals$154,002$13,000$23,515$190,5176%

Oil and refining$903$1,068$669$2,000$10,363$56,678$16,494$88,1753%

Explosives$3,249$31$2,146$59,800$752$65,9782%

Textiles and tanning0.0$12,442$3,797$8,152$34,655$59,0462%

Other$8,000$8,390$3,860$2,151$10,482$13,000$45,8831%

Steel & metal$2,846$12,000$7$24,859$39,7121%

$292,600$249,693$276,981$73,563$189,000$313,159$335,731$160,914$197,000$159,165$143,000$106,200$131,393$180,000$263,703$230,459$3,302,561100%

$311,300

Sheet3

Customer Class

SECTORAECI CoatingsAkuluChemicalCS PerliteCS SystemsCrestDussekImprochemIOPIndustrialLakePM&CCPelichemPlastamidPlaaskemResinkemSAPCSenminSMSATotal

InitiativesChemicalsUrethanes

Agriculture$40,805$1,411$1,000$12,379$2,312$130,000$719$188,6266%

Appliances and furniture$9,400$7,358$112,000$11,362$140,1204%

Automotive$202,500$4,000$1,100$21,000$37,543$266,1438%

Chemical Industry$30,000$45,820$22,764$12,000$67,501$100,007$17,734$14,600$1,106$311,5329%

Coatings Ink & Adh.$21,700$31,826$146$33,327$73,056$17,000$21,700$198,7556%

Construction$250$1,044$12,267$6,027$14,000$30,967$61,772$126,3274%

Detergents$150,000$25,665$40,631$1,388$8,400$70,518$296,6029%

Engineering and foundry$3,224$310$20,000$22,511$1,695$24,038$50,000$121,7784%

Explosives$3,249$31$2,146$59,800$752$65,9782%

Food & Beverage$4,271$32,019$52,781$39,168$39,100$167,3395%

Mining$16,000$73,623$7,224$32,000$5,915$100,505$32,276$20,000$106,200$5,943$141,018$540,70416%

Oil and refining$1,068$669$2,000$10,363$56,678$16,494$87,2723%

Other$8,000$8,390$3,860$2,151$10,482$13,000$45,8831%

Paper and packaging$59,000$39,804$5,000$13,000$6,046$3,422$5,270$3,996$229,048$604$26,303$391,49312%

Plastics & Rubber$18$99$72,000$2,938$2,349$14,681$143,000$6,328$241,4137%

Steel & metal$2,846$12,000$7$24,859$39,7121%

Textiles and tanning0.0$12,442$3,797$8,152$34,655$59,0462%

Toiletries, cosmetics and Pharmaceuticals$80,000$13,000$23,515$116,5154%

$292,600$276,000$276,981$73,563$189,000$313,159$335,731$160,914$197,000$143,600$143,000$106,200$131,393$180,000$263,703$230,459$3,313,303100%

$311,300

Chart 2004

0.1737296989

0.1134797756

0.0829632139

0.075092065

0.0717775802

0.0659255923

0.0646419771

0.0602934289

0.0415116923

0.0406070462

0.0366744587

0.0346872919

0.0316531592

0.0287835545

0.0204037495

0.0195759239

0.0134153536

0.0281420395

Group Sales by Industry Segmentation 2004

2004

CHEMICAL SERVICES 2004

SECTORAECI CoatingsAkuluChemicalCS PerliteCS SystemsCrestDussekImprochemIOPIndustrialLakePM&CCPelichemPlastamidPlaaskemResinkemSAPCSenminSMSATotal

InitiativesChemicalsUrethanes

Mining$6,732$74,556$4,781$21,868$3,494$66,593$23,945$24,600$136,000$6,559$206,400$575,52917%

Paper and packaging$52,824$1,174$44,768$3,726$10,912$3,572$4,672$4,189$3,880$217,857$28,360$375,93411%

Automotive$181,1940.0$7,096$8,4920.0$267$25,000$52,790$274,8398%

Chemical Industry$1,938$44,501$22,616$12,706$39,877$83,977$16,649$11,900$14,600$248,7648%

Detergents$99,843$15,146$232$24,003$1,360$8,400$88,800$237,7837%

Agriculture$139$44,701$19,363$1,436$7,313$3,445$142,000$218,3977%

Plastics & Rubber0.0$92$73,387$1,736$2,987$14,167$113,641$8,135$214,1456%

Coatings Ink & Adh.$48,5140.0$24,110$242$1,581$19,688$68,156$14,600$21,700$1,148$199,7396%

Food & Beverage$1,685$6,797$12,997$1,781$31,181$43,979$39,100$137,5194%

Toiletries, cosmetics and Pharmaceuticals$120,631-$13,892$134,5224%

Engineering and foundry0.0$4,913$297$24,828$13,298$32,158$46,000$121,4944%

Construction$58$262$1,224$3,638$7,247$3,174$14,200$27,634$57,475$114,9113%

Appliances and furniture$9,7570.0$2,1390.0$89,000$3,964$104,8603%

Oil and refining$1,126$1,597$329$1,994$6,122$65,286$18,900$95,3543%

Textiles and tanning0.00.0$949$7,350$4,098$6,377$48,819$67,5932%

Explosives0.0$2,563$12$312$1,268$59,800$896$64,8512%

Steel & metal0.0$3,068$9,711$4$31,659$44,4421%

Other0.0$1,136$3,763$16,001$4,956$11,123$20,685$4,576$15,200$14,000$1,788$93,2283%

$292,289$233,324$272,146$72,510$191,967$185,000$324,203$136,216$194,500$143,600$114,789$150,000$147,626$188,000$57,475$266,676$314,100$28,360$3,312,781100%

REMEMBER TO RE-SORT BY SECTOR SIZE, AND TO MOVE OTHER TO THE BOTTOM!!

$311,300

TM%

9.5

9.8

9.8

9.2

10.1

10.6

10.6

9.5

10.5

11.6

11.5

CSL Trading profit margin %

Sheet1

TM

9012.1

9112.5

9210.4

939.7

949.5

959.8

969.8

979.2

9810.1

9910.6

0010.6

019.5

0210.5

0311.6

0411.5

10yrcum90/00

10yrcum91/01

10yrcum92/02

10yrcum93/03

5yrcum90/95

91/96

92/97

93/98

94/99

95/00

96to01

97to02

98to03

Sheet3

Specialty fibresRevenue R1 595m (-7%); TP R3mTrading profit includes cost of R6m for ongoing restructuring of business, now essentially completeIn dollar terms revenue increased; volume up 5%Restructuring resulted in R60m reduction in annualised fixed costs USA JV approaching break-even; good volume growthContinued good demand for PET

Specialty fibresFuture strategyProduct development strategy to fill LDI plants on track, particularly airbag for automotiveHDI yarn margin focus by selective growth in specialised marketsCosts, efficiencies, yieldsDebottlenecking PET

Specialty fibresOverriding factor remains currency strength against dollar

Chart1

9638210.8373

765269.8795

452957.8386

-229016.9612

3576.62

25536.1473

PBIT

R/$

Rm

R/$

Profit and exchange rate

Sheet1

1H'022H'021H'032H'031H'042h'04

PBIT963827652645295-229013572553

R/$10.83739.87957.83866.96126.626.1473

Sheet2

Sheet2

9638210.8373

765269.8795

452957.8386

-229016.9612

3576.62

25536.1473

PBIT

R/$

Rm

R/$

Profit and exchange Rate

Sheet3

Decorative & packaging coatingsRevenue R671m (+2%) TP R59m (+13%); Margin 8.8% (7.9%)Best margin in recent historyExceptional performance in South Africa, in contrast to unfavourable market conditions and currency issues elsewhereThrusts include broader exposure to specialist building suppliers and hardware stores and new product lines

PropertyRevenue R352m (+70%); TP R130m (+233%)Healthy demand continued in all areas for commercial, residential and retail sectors Outstanding net cash flow of R270m1 100ha of the original 3 700ha excess land available has been sold (including 350ha in 2004)

OutlookProgressive benefits of actions taken to emerge more fully in 2005; particularly cost reductions, acquisitions, property pipeline and innovative growthExpect relatively strong commodity prices and rand exchange rate accompanied by low inflation and interest rate environment to continue