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A E C I LIMITED - Condensed consolidated unaudited interim financial results and cash dividend declaration ended 30 June 2015

Release Date: 28/07/2015 07:05:00      Code(s): AFE     
AECI Limited
(Incorporated in the Republic of South Africa) 
Registration number 1924/002590/06
Tax reference number 9000008608 
(?AECI? or ?the Company?)
Share code: AFE 
ISIN: ZAE000000220

Condensed consolidated unaudited interim financial results and cash 
dividend declaration
for the half-year ended 30 June 2015


HEPS +45% boosted by bulk property sale
Safety performance improvement trend continued 
Market share maintained in a difficult environment 
Excellent progress on acquisitions
Interim cash dividend of 125c declared

Income statement
                                      2015        2014      2014
                                    First-      First-
                              %       half        half      Year
R millions               change  Unaudited   Unaudited   Audited
Revenue(2)                   +8      8 629       7 987    16 903
Net operating costs                 (7 638)     (7 173)  (15 307) 
Profit from operations      +22        991         814     1 596
Interest expense                      (105)        (99)     (204) 
Interest received                       23          25        54
Share of profit of 
investees, net of tax                   15          14        31
Impairment of equity-
accounted investees(3)                 (51)          ?         ? 
Profit before tax                       873        754     1 477
Tax expense                            (201)      (146)     (368) 
Profit for the period                   672        608     1 109
Profit for the period 
attributable to:
? Ordinary
shareholders                            658        601     1 096
? Preference
shareholders                              2          1         3
? Non-controlling
interest                                 12          6        10
                                        672        608     1 109
Headline earnings are derived from:
Profit attributable to
ordinary shareholders                   658        601     1 096
Impairment of goodwill                    ?          ?         * 
Impairment of
property, plant and
equipment                                 1          ?         3
Impairment of assets classified 
as held for sale                          ?         21        21
Impairment of equity-
accounted investees(3)                   51          ?         ? 
Gain on bargain
purchase(4)                             (23)         ?         ? 
Surplus on disposal of
property, plant and
equipment                               (35)        (3)       (3) 
Surplus on disposal of
assets classified as
held for sale(5)                        (33)      (202)     (202) 
Tax effects of the
above items                              13         19        28
Headline earnings                       632        436       943
Per ordinary share
Headline earnings            +45        565         390      842
Diluted headline
earnings                                533         368      800
Basic earnings                +9        588         537      979
Diluted basic earnings                  555         508      929
Ordinary dividends
declared                      +9        125         115      225
Ordinary dividends
paid                                    225         210      325
Special dividends paid                  375           ?        ?
*Nominal amount.

Statement of comprehensive income
                                       2015       2014      2014
                                 First-half First-half      Year 
R millions                        Unaudited  Unaudited   Audited
Profit for the period                   672        608     1 109
Other comprehensive income 
net of tax:
Items that may be reclassified 
subsequently to profit or loss:
Foreign currency translation
differences                             91          21       164
Items that may not be 
reclassified subsequently 
to profit or loss:
Remeasurement of defined-
benefit obligations                      4           3       (65) 
Total comprehensive income
for the period                         767         632     1 208
Total comprehensive income
attributable to:
? Ordinary shareholders               752          629     1 194
? Preference shareholders               2            1         3
? Non-controlling interest             13            2        11
                                      767          632     1 208

Statement of changes in equity
                                       2015       2014      2014
                                 First-half First-half      Year 
R millions                        Unaudited  Unaudited   Audited
Total comprehensive income
for the period                          767        632     1 208
Dividends paid                         (692)      (242)     (378) 
Business combinations and
change in ownership
percentage                                ?         (6)        5
Share-based payment reserve              32         43        91
Equity at the beginning of
the period                            7 803      6 877     6 877
Equity at the end of the
period                                7 910      7 304     7 803
Made up as follows:
Ordinary share capital                  116        116       116
Share premium                           496        496       496
Reserves                                966        644       830
Foreign currency translation
reserve                                 767        525       663
Share-based payment reserve             199        119       167
Retained earnings                     6 242      5 994     6 284
Non-controlling interest                 84         48        71
Preference share capital                  6          6         6
                                      7 910      7 304     7 803

Reconciliation of weighted average number of shares
                                       2015       2014      2014
                                 First-half First-half      Year 
R millions                        Unaudited  Unaudited   Audited
Weighted average number of
ordinary shares                       138,3      138,3     138,3
Weighted average number of 
unlisted ordinary shares
held by consolidated EST              (10,1)     (10,1)    (10,1) 
Weighted average number of
shares held by consolidated
subsidiary                            (11,9)     (11,9)    (11,9)
                                      116,3      116,3     116,3
Weighted average number of 
contingently returnable
ordinary shares held by CST            (4,4)      (4,4)     (4,4)
Weighted average number of 
ordinary shares for basic
earnings per share                    111,9      111,9     111,9
Dilutive adjustment for
potential ordinary shares               6,7        6,5       6,0
Weighted average number of 
ordinary shares for diluted
earnings per share                    118,6      118,4     117,9

Industry segment analysis

                                            2015            2014
                                      First-half      First-half
R millions                             Unaudited       Unaudited
Explosives                                 3 956           3 553
Specialty chemicals                        4 393           4 062
Property?(5)                                 607             652
Group services and inter-segment            (327)           (280)
                                           8 629           7 987

                                         Profit from operations
                                            2015            2014
                                      First-half      First-half
R millions                             Unaudited       Unaudited
Explosives                                   212             120
Specialty chemicals                          532             397
Property?(5)                                 393             447
Group services and inter-segment            (146)           (150)
                                             991             814

                                                  Net assets
                                            2015            2014
                                      First-half      First-half
R millions                             Unaudited       Unaudited                             
Explosives                                 3 656           3 299
Specialty chemicals                        5 435           5 153
Property?(5)                                 575             322
Group services and inter-segment            (153)           (108)
                                           9 513           8 666

Net assets consist of property, plant, equipment, investment 
property, intangible assets, goodwill, inventory, accounts 
receivable, pre-payment for business combination, and assets 
classified as held for sale less accounts payable.

Statement of financial position
                                    2015        2014        2014
                                  30 Jun      30 Jun        Year
R millions                     Unaudited   Unaudited     Audited
Non-current assets                 7 061       6 662        7 161
Property, plant and
equipment                          4 084       3 845        4 046
Investment property                  136         184          172
Intangible assets                    234         136          247
Goodwill?(6)                       1 345       1 123        1 291
Pension fund employer
surplus accounts                     144         214          179
Investments in
associates?(3)                        212        251          260
Investments in joint
arrangements?(4)                      311        321          308
Other investments                      94         56           99
Deferred tax                          501        529          555
Loans receivable                        *          3            4
Current assets                      8 274      7 180        7 626
Inventories                         3 001      2 976        2 879
Accounts receivable                 3 738      2 722        3 243
Pre-payment for business
combination                             ?        400            ? 
Loans to joint arrangements             ?         21           43
Assets classified as held
for sale                                2        207           85
Cash                                1 533        854        1 376
Total assets                       15 335     13 842       14 787
Equity and liabilities
Ordinary capital and
reserves                            7 820      7 250        7 726
Non-controlling interest               84         48           71
Preference share capital                6          6            6
Total equity                        7 910      7 304        7 803
Non-current liabilities             1 613      2 142        2 691
Deferred tax                          162        190          189
Non-current borrowings                401      1 002        1 459
Non-current provisions and
employee benefits                   1 050        950        1 043
Current liabilities                 5 812      4 396        4 293
Accounts payable?(5)?(6)            3 027      2 927        3 513
Current borrowings                  2 720      1 443          583
Loans from joint
arrangements                           34         17           49
Tax payable                            31          9          148
Total equity and liabilities       15 335     13 842       14 787
* Nominal amount.

Statement of cash flows
                                    2015        2014        2014
                                  30 Jun      30 Jun        Year
R millions                     Unaudited   Unaudited     Audited
Cash generated by operations       1 284       1 050       2 318
Dividends received                     ?           ?          43
Interest paid                       (105)        (99)       (204) 
Interest received                     23          25          54
Tax paid                            (252)       (279)       (488) 
Changes in working capital          (898)         72         547
Cash flows relating to
defined-benefit costs                (59)        (51)        (94) 
Cash flows relating to non-
current provisions and 
employee benefits                    (42)        (36)        (59) 
Cash (utilised in)/available
from operating activities            (49)        682       2 117
Dividends paid                      (692)       (242)       (378) 
Cash flows from operating
activities                          (741)         440      1 739
Cash flows from investing
activities                          (246)        (309)      (704)
Net investment expenditure           (15)         (79)       131
Pre-payment for business
combination                            ?         (400)         ? 
Proceeds on disposal of
capital property assets                ?          507          ? 
Net capital expenditure             (231)        (337)      (835) 
Net cash(utilised)/generated
before financing activities         (987)         131      1 035
Cash flows from financing
activities                          1 083       (509)      (912) 
Non-current loans receivable            4          6          6
Borrowings                          1 079       (515)      (918) 
Increase/(decrease) in cash            96       (378)       123
Cash at the beginning of the
period                              1 376      1 219      1 219
Translation gain on cash               61         13         34
Cash at the end of the period       1 533        854      1 376

Other salient features
                                    2015        2014        2014
                                  30 Jun      30 Jun        Year
R millions                     Unaudited   Unaudited     Audited
Capital expenditure                  272         343         745
? expansion                          146         142         335
? replacement                        126         201         410
Capital commitments                  537         434         342
? contracted for?(7)                 304         131         161
? not contracted for                 233         303         181
Future rentals on property,
plant and equipment leased           304         244         358
? payable within one year             61          75          91
? payable thereafter                 243         169         267
Net borrowings                     1 588       1 591         666
Gearing (%)?*                         20          22           9
Current assets to current
liabilities                          1,4         1,6         1,8
Net asset value per ordinary
share (cents)                      6 724       6 234       6 644
Depreciation and
amortisation                         298         258         547
ZAR/US$ closing exchange
rate (Rand)                        12,28       10,63       11,57
ZAR/US$ average exchange           11,91       10,70       10,85
rate (Rand)
* Borrowings less cash as a percentage of total equity.

(1) Basis of preparation and accounting policies
The condensed consolidated unaudited interim financial results are 
prepared in accordance with International Financial Reporting 
Standard IAS 34 Interim Financial Reporting; the South African 
Institute of Chartered Accountants Financial Reporting Guides as 
issued by the Accounting Practices Committee; Financial 
Pronouncements as issued by the Financial Reporting Standards 
Council; and the requirements of the Companies Act of South Africa. 
The accounting policies applied in the preparation of these condensed 
consolidated interim results are in terms of
International Financial Reporting Standards and are consistent with 
those applied in the previous consolidated financial statements.
The preparation of these condensed consolidated interim results for 
the half-year ended 30 June 2015 was supervised by the Financial 
Director, Mr KM Kathan CA(SA) AMP (Harvard). The condensed 
consolidated interim results have not been audited or reviewed by the 
Company?s auditor, KPMG Inc.

(2) Includes foreign and export revenue of R3 096 million 
(2014: R2 502 million).

(3) During the period, the Group?s investment in BBRI was impaired by 
US$4,2 million (R51 million). BBRI is an equity- accounted associate 
company. BBRI has incurred operating losses for the last two years 
and, with lower than anticipated production volumes and a depressed 
market as a result of low thermal coal prices, the carrying amount 
of the investment exceeds its value-in-use. This has resulted in 
the recognition of an impairment. The value-in-use was determined 
by discounting the expected future cash flows to be generated from 
the investment over the useful life of the underlying plant using 
a discount rate of 11,03%. At 30 June 2015 the recoverable amount 
of the investment in BBRI was R196 million.

(4) In June 2015 AECI, through its wholly-owned subsidiary Chemical 
Services Limited, acquired the remaining 50% share in Resinkem 
Proprietary Limited from its joint venture partner, GP Chemicals 
International Holdings S.A.R.L., for R1. AECI acquired 100% of the 
shares in the Resinkem business for a fair value consideration of 
R22,5 million. The fair value of the assets acquired and liabilities 
assumed amounted to R45 million, resulting in a bargain purchase 
gain of R22,5 million being recognised in net operating costs.

Acquirees? net assets at acquisition date
R millions
Property, plant and equipment                            17,0
Working capital                                          10,0
Provisions                                               (8,0) 
Cash                                                     26,0
Deferred and current tax                                    * 
Net identifiable assets and liabilities                  45,0
Gain on bargain purchase                                 22,5
Net consideration (non-cash)                             22,5
* Nominal amount.

(5) The AECI Group transferred another property to Shanghai Zendai 
Property Limited in May 2015. Proceeds of R105 million, previously 
reflected as income received in advance, and the carrying amount
of R72 million, previously classified as held for sale, were 
recognised in the income statement. The profit of R33 million was 
included in the property segment but excluded from HEPS as it was 
capital in nature.

One remaining property related to this transaction still needs to be 
transferred. It is reflected as assets classified as held for sale at 
30 June 2015, in the amount of R2 million. Cash of R16 million 
received for this property was included in accounts payable
as income received in advance. Both these amounts will be recognised 
as a net profit on disposal on transfer of the land to Shanghai 
Zendai Property Limited.

(6) On 1 June 2015 AECI?s wholly-owned subsidiary AECI (Mauritius) 
Limited acquired 100% of the shares of Farmers Organisation Limited 
(?FOL?), a company based in Malawi which distributes agrochemicals, 
seeds and spraying equipment. The acquisition grows AECI?s 
agrochemicals footprint in Africa and allows Nulandis, AECI?s 
existing agrochemicals business, the opportunity to expand sales of 
its manufactured products into Malawi.

The acquisition has been recognised on a provisional basis as the
Purchase Price Allocation (?PPA?) has not yet been completed.

The estimated purchase price of US$11 million (R134 million) has been 
recognised as a liability at 30 June 2015 since the initial payment 
of US$9,3 million (R113 million) was paid on 1 July 2015. There is an 
additional amount of US$700 000 (R8 million) payable based on FOL?s 
audited working capital, and a contigent consideration of US$1 
million (R12 million) that is dependent on its future earnings. The 
contingent consideration liability will be assessed as part of the 
PPA to determine the appropriate liability to be included in the 
purchase consideration at acquisition date. The liability and 
goodwill recognised may be adjusted accordingly.

In June 2015, FOL contributed revenue of R15 million and profit from 
operations of R1 million. If the acquisition had occurred on
1 January 2015, management estimates that AECI?s consolidated revenue 
would have been R8 682 million and AECI?s consolidated profit from 
operations would have been R996 million.

The FOL acquisition had the following effect on the Group?s assets 
and liabilities (the values are provisional and subject to change 
on conclusion of the effective date audit, this being 31 May

Acquirees? net assets at acquisition date (provisional)
R millions
Property, plant and equipment                             3
Working capital                                          66
Deferred and current tax                                 11
Net identifiable assets and liabilities                  80
Goodwill on acquisition                                  54
Net initial purchase price (recognised as a
current liability)                                      134

(7) AECI entered into an agreement to acquire 100% of Southern Canned 
Products Proprietary Limited (?SCP?), a leading manufacturer and 
distributor of ingredients for juice-based drinks and products, from 
Gerber Goldschmidt South Africa, a private equity investment company, 
and the management of SCP. The conditions precedent in the agreement 
had not been fulfilled at 30 June 2015 and an amount of R235 million 
was included in capital commitments in relation to the acquisition. 
The conditions precedent were met in July and the acquisition?s 
effective date will be 1 August 2015.

(8) Contingent liabilities
There were no further developments in the investigation by the 
Competition Commission of South Africa in respect of Akulu Marchon, 
as disclosed in AECI?s 2014 integrated report. Accordingly, no 
provision for any potential liability has been made.

(9) The AECI Group entered into various sale and purchase 
transactions with related parties in the Group in the ordinary course 
of business, on an arm?s length basis, the nature of which was 
consistent with those previously reported. All transactions and 
balances with these related parties have been appropriately 
eliminated in the consolidated results.

(10) The AECI Group measures forward exchange contracts at fair
value using inputs as described in level 2 of the fair value 
hierarchy. The fair values for forward exchange contracts are based 
on quotes from brokers. Similar contracts are traded in an active 
market and the quotes reflect the actual transactions on similar 
instruments. The carrying values of all other financial assets or 
liabilities approximate their fair values based on the nature or 
maturity period of the financial instrument. There were no
transfers between levels 1, 2 or 3 of the fair value hierarchy during 
the half-year ended 30 June 2015.

(11) The condensed consolidated unaudited interim financial results 
do not include all of the disclosures required for full financial 
statements and should be read in conjunction with the consolidated 
financial statements for the year ended 31 December 2014. 

Operating environment 
AECI again delivered creditable results in an ever-more challenging 
local and international environment. Commodity prices continued to 
weaken owing to the deceleration of global growth, particularly in 
China. This trend, which is expected to persist in the medium term, 
added further pressure to the global mining sector. Some mines have 
closed, others have undertaken operational restructuring and all 
mining houses have intensified cost containment processes in their 
supply chain.
Growth in South Africa?s economy remained weak, specifically in
the manufacturing and mining sectors. In the rest of Africa growth 
remained more resilient.

AECI?s revenue increased by 8% to R8 629 million (2014: R7 987 
million). 36% of this was generated outside South Africa, reflecting 
the progress made in the Group?s strategy to diversify
geographically. The weak ZAR/US$ exchange rate contributed to this 
Profit from operations was R991 million, 22% higher than the R814 
million achieved in the prior corresponding period. Headline earnings 
improved by 45% to R632 million (2014: R436 million). EPS was 588 
cents (2014: 537 cents), a 9% year-on-year improvement. HEPS was 45% 
higher at 565 cents (2014: 390 cents), with the bulk sale of the 
Group?s surplus property assets at Somerset West contributing 230 
cents. This transaction, for R400 million in cash (excluding VAT) 
with the City of Cape Town, became unconditional
in June 2015 when all conditions precedent were met.
The performance from the specialty chemicals segment was most 
pleasing, reflecting the benefits of recent acquisitions and of 
AECI?s active portfolio management which assists in maintaining an 
effective cost base.
Although the strikes in South Africa?s platinum mining sector did not 
recur, AEL Mining Services? (?AEL?) results were adversely affected 
by prevailing market conditions.
Further progress was made in relation to the regulatory aspects of 
de-risking the Company?s defined-benefit obligations and the project 
is expected to be finalised by year-end.
The Board has declared an interim cash dividend of 125 cents per 
ordinary share, a 9% increase on 2014?s 115 cents.

Tragically, as reported in February this year, a fatality occurred in 
January. Zingisile Reginald Mkhosi, a Group employee, died in a 
traffic accident while travelling on a public road to a customer?s 
site in the Northern Cape.
AECI?s Total Recordable Injury Rate (?TRIR?) improved further to
0,33 from 0,50 in December 2014. AEL maintained its excellent record 
and there was good overall improvement in the specialty chemicals 
segment?s performance. The TRIR measures the number of incidents per 
200 000 hours worked.

Revenue increased by 11% to R3 956 million (2014: R3 553 million). 
Profit from operations was R212 million, 77% up on that for the prior 
corresponding period. The operating margin was 5,4% (2014:
3,4%). Overall explosives volumes to mining customers were 10% higher.
In South Africa, AEL benefited from improved volumes in the platinum 
mining sector and initiating systems volumes were 59% higher. This 
had a positive effect on the ISAP plant, where record production was 
achieved. Investments in new business gained in surface mining did 
not deliver the expected returns, resulting in lower margins although 
explosives volumes increased by 18%. In addition to the effects of 
the commodity cycle, which resulted in lower stripping ratios, other 
factors that depressed demand were safety-related stoppages, 
unprotected strikes and operational problems at some customer sites.
AEL retained business in the recent retendering processes undertaken 
by major customers, albeit that it was necessary to sacrifice margin.
There were robust results from businesses on the rest of the 
continent thanks to a more favourable product mix, even though volume 
increases were marginal. Particularly pleasing was the performance of 
Central Africa?s copper mining sector. The gold mining sector in West 
Africa, though still challenged by the effects of lower gold prices, 
stabilised. There was good growth in East and North Africa.
AEL?s business in Indonesia remained severely constrained as a
result of very weak thermal coal prices. Mines have closed, customers 
have reduced their stripping ratios and have focused on free digging, 
all of which reduced the demand for explosives and AEL?s volumes 
declined by 38%.
The BBRI plant in Indonesia is fully operational and its ability to 
achieve desired run-rates has been demonstrated. AECI?s US$23 million 
investment in this facility in 2012 was motivated by the supply 
requirements of its largest customer in the region. Regrettably, with 
the severe decline in the thermal coal mining market from 2014, the 
customer has scaled back its operations significantly and it was 
necessary to run the BBRI plant at lower rates. Given that the market 
is not expected to recover significantly in the medium term the 
investment has been partially impaired by US$4,2 million.
The new business in Australia commenced commercial operation in 
January and is supplying three large coal mines via AEL?s partner, 
Capital expenditure in the six months was R126 million, of which R55 
million was for investments at customer sites to support new business 

Specialty chemicals
Revenue increased by 8% to R4 393 million (2014: R4 062 million) and 
profit from operations was 34% higher at R532 million (2014: R397 
million). The sale of Akulu Marchon?s former site in Mobeni, 
KwaZulu-Natal, accounted for R34 million of this. In addition, R23 
milion was recognised on a bargain purchase as a result of the 
acquisition of the remaining 50% of Resinkem from the joint
venture partner. The operating margin improved to 12,1% from 9,8% 
last year also thanks to the improved profitability of Chemfit, 
ChemSystems, Industrial Oleochemical Products, Lake Foods and SANS 
Technical Fibers.
Senmin made a solid contribution as platinum mining activities 
recovered after last year?s protracted strikes. Exports were lower 
but are expected to increase in the second six months.
ImproChem?s performance, particularly in the public water sector, was 
boosted by the acquisition and integration of Clariant Southern 
Africa?s water treatment business in Africa. The acquisition, which 
took effect on 1 July 2014, was in line with AECI?s strategy to 
become a leading provider of water treatment solutions in Africa.
The provision of agrochemicals in Africa and in other selected 
geographies is another strategic growth area. Nulandis delivered a 
good result. This business is leading the Group?s agrochemicals 
thrust and its footprint was enhanced through the acquisition of
100% of Farmers Organisation Limited (?FOL?), with effect from 1
June 2015.
FOL is a distributor of agrochemicals, seeds and spraying equipment 
on behalf of multinational producers, based in Malawi. The company 
operates in the commercial estates market and revenue from the 
smallholder market segment is increasing. This provides Nulandis with 
a springboard into the smallholder market there and in other 
countries in Southern and East Africa. The acquisition also presents 
further opportunities for Nulandis to expand sales of its in-house 
products through FOL.
AECI entered into an agreement to acquire 100% of Southern Canned 
Products (?SCP?), a leading manufacturer and distributor of 
ingredients for juice-based drinks and products based in Cape Town. 
The acquisition, which will become effective on 1 August
2015, is part of AECI?s stated strategy of growing its food additives 
and ingredients business in South Africa and ultimately the rest of 
Africa. This growth initiative is led by Lake Foods which represents 
international manufacturers and suppliers of specialty ingredients 
and commodities for the bakery, beverage,
dairy, health and nutrition, meat, poultry and wine industries. SCP 
will enhance the offering to the beverage industry, in particular.
Capital expenditure for the segment totalled R134 million of which 
R83 million was for expansion. Key projects were completion of 
Senmin?s new Research and Development centre, in Sasolburg, and Lake 
Foods? new manufacturing facility in Cape Town.

Portfolio management
Restructuring of Akulu Marchon has been completed. The petroleum 
jelly division was closed in 2014 and its assets have been sold. The 
white oils activities were integrated with Industrial Oleochemical 
Products, the surfactants business was transferred to Chemical 
Initiatives and the personal care portfolio has been divisionalised 
into ChemSystems.
Resinkem has also been moved to ChemSystems.

Revenue of R607 million (2014: R652 million) comprised R435 million 
related to land sales and the balance to the leasing and facilities 
management businesses. Profit from operations was R393 million (2014: 
R447 million). Last year?s results included profit of R421 million 
from the bulk land disposal at Modderfontein.
The Somerset West bulk land sale to the City of Cape Town was 
approved by the Competition Tribunal and, accordingly, revenue of 
R400 million and profit from operations of R294 million were 
recognised. The transfer process has commenced and completion is 
expected before year-end.
The sale excluded Precinct 1, which is 25 hectares in extent and was 
independently valued at R119 million in September 2014. Value from 
this land will continue to be realised in the ordinary course of 

Cash utilisation
Capital expenditure was R272 million, lower than 2014?s R343 million, 
and was aligned with the depreciation charge. R146 million of the 
expenditure was for expansion projects.
Gearing was higher at 20%, from 9% in December 2014. Net working 
capital was at 21% of revenue owing to the longer working capital 
cycle in the Indonesian business and the fact that the cash proceeds 
of the Somerset West sale are yet to be received. Excluding the 
effects of the latter, net working capital would have been at 19% of 
revenue, unchanged from the prior
corresponding period. A special dividend of 375 cents per ordinary 
share was also paid in the period.
Cash interest cover improved to 15,1 times (2014: 13,4 times). Net 
interest paid increased to R82 million (2014: R74 million) in line 
with the higher gearing ratio.

Outlook and strategy
Conditions in the global and domestic mining industry, and in the 
local manufacturing sector, will remain difficult. In South Africa, 
electricity constraints and uncertainty in labour relations will 
exacerbate this.
AECI will need to remain nimble and flexible enough to enhance the 
Group?s value-adding product and service offering to its customers in 
an environment that is likely to remain challenging. This includes 
reshaping and refocusing its mining solutions businesses to align 
them with the significantly changed conditions in the mining 
The Group will continue to consolidate its geographical footprint and 
will concentrate on growing its position further in African markets.
The benefits of recent strategic acquisitions and capital
expenditure programmes are also expected to assist the Group?s 
Schalk Engelbrecht           Mark Dytor 
Chairman                     Chief Executive 
Woodmead, Sandton
28 July 2015

Directors: S Engelbrecht (Chairman), MA Dytor (Chief Executive)***, 
RMW Dunne*, Z Fuphe, G Gomwe**, RL Hiemstra, KM Kathan (Financial 
Director)***, LL Mda, AJ Morgan, LM Nyhonyha, R Ramashia.
***Executive *British **Zimbabwean; appointed 1 January 2015

Group Company Secretary: EN Rapoo

Notice to shareholders
Declaration of interim ordinary cash dividend no. 163
Notice is hereby given that on Monday, 27 July 2015, the Directors of 
AECI declared a gross interim cash dividend of 125 cents per share in 
respect of the six-month period ended 30 June 2015. The dividend is 
payable on Monday, 7 September 2015 to holders of ordinary shares 
recorded in the register of the Company at the close of business on 
the record date, being Friday, 4 September 2015.
The last day to trade ?cum? dividend will be Friday, 28 August
2015 and shares will commence trading ?ex? dividend as from the 
commencement of business on Monday, 31 August 2015.
A South African dividend withholding tax of 15% 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
106,25000 cents per share 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 Friday, 28 August 2015.
The issued share capital at the declaration date is 128 241 140 
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 
Any change of address or dividend instruction must be received on or 
before Friday, 28 August 2015.
Share certificates may not be dematerialised or rematerialised
from Monday, 31 August 2015 to Friday, 4 September 2015, both days 

By order of the Board
E N Rapoo
Group Company Secretary

Woodmead, Sandton
28 July 2015

Transfer Secretaries
Computershare Investor Services (Pty) Ltd
70 Marshall Street

Computershare Investor Services PLC PO Box 82
The Pavilions Bridgwater Road Bristol BS 99 7NH England
Registered Office
1st floor, AECI Place
24 The Woodlands
Woodlands Drive

Rand Merchant Bank (A division of FirstRand Bank Limited)

Date: 28/07/2015 07:05:00 Supplied by www.sharenet.co.za                     
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