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A E C I LIMITED - Condensed consolidated unaudited interim financial results, cash dividend declaration and directorate changes

Release Date: 26/07/2016 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, 
interim cash dividend declaration and directorate changes
for the half-year ended 30 June 2016

Profit from operations of Explosives and Specialty 
Chemicals +6,6% to R793m
Group revenue +5% to R9,1bn
World-class safety performance: TRIR of 0,38
HEPS -48% 
HEPS +15% after adjusting for Somerset West bulk land sale and
loss on PRMA settlement 
Interim cash dividend +8% to 135cps declared

Income statement

                                            2016      2015     
                                          First-    First-     2015
                                     %      half      half     Year
R millions               Notes  change Unaudited Unaudited  Audited
Revenue                      2       5     9 068     8 629   18 446
Net operating costs                       (8 497)   (7 638) (16 743)
Profit from operations             (42)      571       991    1 703
Interest expense                            (154)     (105)    (253) 
Interest received                             26        23       66
Share of profit of 
investees, net of tax                         28        15       28
Impairment of equity-
accounted investees                            ?       (51)     (51) 
Profit before tax                            471       873    1 493
Tax expense                                 (146)     (201)    (464) 
Profit for the period                        325       672    1 029
Profit for the period 
attributable to:
? Ordinary shareholders                      309       658    1 007
? Preference
shareholders                                   2         2        3
? Non-controlling
interest                                      14        12       19
                                             325       672    1 029
Headline earnings are 
derived from:
Profit attributable to
ordinary shareholders                        309       658    1 007
Impairment of goodwill                         ?         ?        4 
of impairment of
property, plant                               (5)        1       19
Impairment of equity-
accounted investees                            ?        51       51
Gain on bargain
purchase                                       ?       (23)     (23)
Surplus on disposal 
of property, plant and
equipment                                     (5)      (35)     (26)
Surplus on disposal 
of assets classified as
held for sale                                  ?       (33)     (48)
Foreign exchange 
losses on net 
investments in
Foreign operations                            14         ?        ? 
Tax effects of the
above items                                   (3)       13        4
Headline earnings                            310       632      988
Per ordinary share
Headline earnings                 (48)       293       565      894
Diluted headline
earnings                                     290       533      870
Basic earnings                    (50)       292       588      911
Diluted basic earnings                       289       555      886
Ordinary dividends
declared                            8        135       125      260
Ordinary dividends paid                      260       225      350
Special dividend paid                          ?       375      375

Statement of comprehensive income

                                             2016      2015     
                                           First-    First-     2015
                                             half      half     Year
R millions                              Unaudited Unaudited  Audited
Profit for the period                         325       672    1 029
Other comprehensive income net of tax
Items that may be reclassified 
subsequently to profit or loss: 
Foreign currency translation
differences                                  (172)       91      808
Items that will not be reclassified
subsequently to profit or loss: 
Remeasurement of defined-benefit
obligations                                     ?         4      820
Total comprehensive income for the
period                                        153       767    2 657
Total comprehensive income
attributable to:
? Ordinary shareholders                       141       752    2 619
? Preference shareholders                       2         2        3
? Non-controlling interest                     10        13       35
                                              153       767     2 657

Statement of changes in equity

                                             2016      2015     
                                           First-    First-     2015
                                             half      half     Year
R millions                              Unaudited Unaudited  Audited
Total comprehensive income for the
period                                        153       767    2 657
Dividends paid                               (286)     (692)    (838)
Share-based payment reserve                     7        32      (17) 
Shares repurchased                            (39)        ?     (563) 
Equity at the beginning of the period       9 042     7 803    7 803
Equity at the end of the period             8 877     7 910    9 042
Made up as follows:
Ordinary share capital                        110       116      110
Share premium                                   ?       496        ? 
Reserves                                    1 445       966    1 605
Foreign currency translation reserve        1 288       767    1 455
Share-based payment reserve                   157       199      150
Retained earnings                           7 203     6 242    7 217
Non-controlling interest                      113        84      104
Preference share capital                        6         6        6
                                            8 877     7 910    9 042

Reconciliation of weighted average number of shares

                                             2016      2015     
                                           First-    First-     2015
                                             half      half     Year
Millions                                Unaudited Unaudited  Audited
Weighted average number of ordinary
shares at the beginning of the period       132,4     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
contingently returnable ordinary
shares held by CEDT                          (4,4)     (4,4)    (4,4) 
Weighted average number of shares held
by consolidated subsidiary                  (11,9)    (11,9)   (11,9)
Weighted average number of shares
repurchased during the period                (0,2)        ?    (1,4) 
Weighted average number of ordinary
shares for basic earnings per share         105,8     111,9    110,5
Dilutive adjustment for potential
ordinary shares                               1,2       6,7      3,1
Weighted average number of ordinary
shares for diluted earnings per share       107,0     118,6    113,6

Industry segment analysis
First-half                             Profit from
Unaudited                Revenue       operations        Net assets
R millions             2016    2015    2016   2015     2016    2015
Explosives            4 154   3 956     220    212    3 614   3 656
Specialty chemicals   4 983   4 393     573    532    5 554   5 435
Property                195     607      44    393      228     575
Group services and
inter-segment          (264)   (327)   (266)  (146)     125    (153)
                      9 068   8 629     571    991    9 521   9 513

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

Statement of financial position at 30 June

                                            2016       2015       2015
                                       At 30 Jun  At 30 Jun  At 31 Dec                       
R millions                      Notes  Unaudited  Unaudited    Audited 
Non-current assets                         7 918      7 061      8 374
Property, plant and equipment              4 168      4 084      4 296
Investment property                          139        136        137
Intangible assets                            243        234        257
Goodwill                                   1 593      1 345      1 590
Pension fund employer surplus
accounts                            3        730        144        982
Investments in associates                    232        212        250
Investments in joint
arrangements                                 298        311        313
Other investments                             28         94         27
Deferred tax                                 487        501        522
Loans receivable                               ?          *          ?
Current assets                             7 587      8 274      9 420
Inventories                                3 173      3 001      3 358
Accounts receivable                        3 279      3 738      3 825
Other investments                             69          ?         67
Loans to joint arrangements                   40          ?          ?
Assets classified as held for
sale                                           ?          2          ? 
Tax receivable                                85          ?         56
Cash                                         941      1 533      2 114
Total assets                              15 505     15 335     17 794
Equity                                     8 877      7 910      9 042
Ordinary share capital and
reserves                                   8 758      7 820      8 932
Non-controlling interest                     113         84        104
Preference share capital                       6          6          6
Non-current liabilities                    2 819      1 613      1 871
Deferred tax                                 355        162        427
Non-current borrowings                     1 763        401        672
Contingent consideration                      74          ?         70
Non-current provisions and
employee benefits                   3        627      1 050        702
Current liabilities                        3 809      5 812      6 881
Accounts payable                           3 074      3 027      4 003
Current borrowings                           699      2 720      2 620
Contingent consideration                       ?          ?         15
Loans from joint arrangements                 34         34         36
Tax payable                                    2         31        207
Total equity and liabilities              15 505     15 335     17 794

*  Nominal amount.

Statement of cash flows

                                             2016       2015      
                                           First-     First-      2015
                                             half       half      Year
R millions                              Unaudited  Unaudited   Audited
Cash generated by operations                1 122      1 284     2 607
Dividends received                             45          ?        30
Interest paid                                (150)      (105)     (253) 
Interest received                              26         23        66
Tax paid                                     (421)      (252)     (532)
Changes in working capital                   (275)      (898)     (215) 
Cash outflows relating to defined-
benefit costs                                 (13)       (59)     (286)
Cash outflows relating to non-current
provisions and employee benefits              (26)       (42)      (62)
Settlement of performance shares              (23)         ?      (94) 
Cash available from/(utilised in)
operating activities                          285        (49)    1 261
Dividends paid                               (286)      (692)     (838) 
Cash flows from operating activities           (1)      (741)       423
Cash flows from investing activities         (270)      (246)     (844)
Net investment activities                     (51)       (15)     (298) 
Net capital expenditure                      (219)      (231)     (546) 
Net cash utilised before financing
activities                                   (271)      (987)     (421) 
Cash flows from financing activities         (857)     1 083       691
Non-current loans receivable                    ?          4         4
Share repurchase                              (39)         ?      (563) 
Borrowings                                   (818)     1 079     1 250
Net (decrease)/increase in cash            (1 128)        96       270
Cash at the beginning of the period         2 114      1 376     1 376
Translation (loss)/gain on cash               (45)        61       468
Cash at the end of the period                 941      1 533     2 114

Other salient features

                                             2016       2015      
                                           First-     First-      2015
                                             half       half      Year
R millions                              Unaudited  Unaudited   Audited
Capital expenditure                           236        272       583
? expansion                                    77        146       275
? replacement                                 159        126       308
Capital commitments                           277        537       436
? contracted for                               71        304        71
? not contracted for                          206        233       365
Future rentals on property, plant and
equipment leased                              271        304       331
? payable within one year                      84         61       112
? payable thereafter                          187        243       219
Net borrowings                              1 521      1 588     1 178
Gearing (%)*                                   17         20        13
Current assets to current liabilities         2,0        1,4       1,4
Net asset value per ordinary share
(cents)                                     7 966      6 724     8 096
Depreciation and amortisation                 326        298       590
ZAR/US$ closing exchange rate (rand)        14,72      12,28     15,48
ZAR/US$ average exchange rate (rand)        15,43      11,91     12,76

*  Borrowings less cash, as a percentage of 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 interim financial 
results are in terms of International Financial Reporting Standards and 
are consistent with those applied in the previous consolidated annual
financial statements.

The preparation of these condensed consolidated financial results for the 
half-year ended 30 June 2016 was supervised by the Financial Director, 
Mr KM Kathan CA(SA) AMP (Harvard). The condensed consolidated financial 
results have not been audited or reviewed by the Company?s auditor, 

(2) Revenue includes foreign and export revenue of R3 351 million 
(2015: R3 096 million).

(3) Settlement of post-retirement medical aid obligations
It was stated in AECI?s 2015 integrated report that voluntary
alternative benefit offers had been made to active employees eligible 
for a post-retirement medical aid subsidy in order to settle their 
defined-benefit entitlements. The offers were made to eligible employees 
who are contributing members of the AECI Employees Provident Fund (?AEPF?), 
the AECI Defined Contribution Pension Fund (?ADCPF?) and the AECI Employees 
Pension Fund.

The offers were funded from employer surplus accounts (?ESA?), with a section 
15E transfer from the ESA of the AECI Pension Fund to the AEPF and the ADCPF 
required to enable the settlement. The section 15E transfer was approved by 
the Financial Services Board. The ESA transfers took place in March 2016 and 
the settlement offers were implemented in June 2016 for those employees who 
had accepted the offer.

The amount transferred from the ESA was R258 million and the related liability 
derecognised had a carrying amount of R122 million. This resulted in a loss on 
settlement of R136 million, which is included in net operating costs for the 
period and in HEPS.

(4) Share repurchase
During the period AECI completed the repurchase of shares in terms of the 
general authority to do so approved by shareholders at the Annual General 
Meeting held on 1 June 2015. 442 212 shares were repurchased at a cost of 
R38,5 million. An authority to repurchase a further 5% of the issued capital, 
under specified terms and conditions, was approved by shareholders at the 
AGM on 30 May 2016.

(5) Contingent liabilities
At 30 June 2016 there had been no formal response by the Competition 
Commission (?Commission?) of South Africa in respect of the investigations 
into price fixing at Akulu Marchon. However, correspondence from the Commission 
was received on 21 July 2016 and the Company is considering this prior to 
responding to the Commission, which response is expected by 2 August 2016.
The Group is also involved in various other legal proceedings and has, in 
consultation with its legal counsel, assessed the outcome of these proceedings. 
Following this assessment, no provision has been made in respect of these 
legal proceedings and they are not likely to have a material adverse effect 
on the Group.

(6) 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 is consistent with those previously reported. 
All transactions and balances with these related parties have been eliminated 
appropriately in the consolidated results.

(7) 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 2016.

(8) 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 annual financial 
statements for the year ended 31 December 2015.

Financial performance
AECI?s Explosives and Specialty Chemicals core businesses achieved
improvements in revenue and profit from operation compared to the first six
months of 2015. Revenue in Explosives grew by 5% to R4 154 million 
(2015: R3 956 million) and profit from operations by 3,8% to R220 million 
(2015: R212 million). In Specialty Chemicals revenue was 13,4% higher at 
R4 983 million (2015: R4 393 million) and a 7,7% increase to R573 million 
was achieved in profit from operations (2015: R532 million). The combined
profit from operations, therefore, grew by 6,6% to R793 million.

This performance was enabled by volume growth in some sectors, the 
contributions from 2015?s acquisitions, the benefits of good cost 
management initiatives undertaken in the prior year, and market share 

The businesses delivered their results in an environment that remained 
constrained, both locally and globally. The global resources sector was 
under pressure, while the growth rate in South Africa?s manufacturing sector 
was insignificant and the agricultural sector in a number of Southern 
African countries continued to be hampered by the effects of the drought.

The Property segment has no land remaining for redevelopment in the short 
term. The once-off bulk sale of the Group?s surplus property assets at 
Somerset West was concluded in June 2015. This contributed R294 million 
to profit from operations and boosted headline earnings per share (?HEPS?) 
and earnings per share (?EPS?) by 230 cents.

HEPS and EPS in the current period were also negatively impacted by the
settlement cost (non-cash) of the post-retirement medical aid ("PRMA")
liability. This cost, funded from the employer surplus account allocated
to the Company by the AECI Pension Fund, was in excess of the carrying
amount of the liability. The difference was accounted for as a loss on
settlement, in accordance with IAS 19 Employee Benefits. The estimated
pre-tax loss for the period was R136 million, a 93 cents per share effect.

The Group's revenue increased by 5% to R9 068 million (2015: R8 629 
million), of which 37% was generated outside South Africa (2015: 36%). 
Growth in local revenue was curtailed by challenging conditions in the
coal and iron ore mining sectors. Profit from operations of R571 million
was 42% lower than the R991 million achieved in 2015. Headline earnings
declined by 51% from R632 million to R310 million. HEPS was 293 cents
(2015: 565 cents), a 48% decline, and EPS was 292 cents (2015: 588 cents).

The benefits of the restructuring of the Group?s post-retirement 
obligations are being realised and the anticipated annual savings of 
R120 million are on track.

The Board has declared an interim cash dividend of 135 cents per 
ordinary share, an increase of 8% from the prior corresponding period.

The Group's businesses operate on five continents and in 30 countries and, 
while the safety target remains zero harm to employees and contractors, 
the 12-month Total Recordable Injury Rate ("TRIR") was 0,38 (0,33 in 
June 2015). This performance compares favourably with that of AECI's 
peers. The TRIR measures the number of incidents per 200 000 hours worked.

Segmental performance
AEL Mining Services? (?AEL?) revenue and profit from operations improved
in the reporting period. The operating margin was 5,3%, in line with 2015, 
reflecting the full effects of margin contraction subsequent to customers? 
retendering processes in the second half of 2015. AEL retained the majority 
of its business in these processes and there were some market share gains. 
Overall explosives volumes were down marginally, by 0,5%.

In South Africa, the explosives volume decline was 2,8% as customers 
restructured their mining plans to optimise returns, targeted high-grade 
ores and experienced numerous section 54 stoppages. In iron ore,
customers cut their output significantly. This resulted in AEL?s revenue 
declining by almost R100 million. A further R100 million decline in revenue 
was experienced in the coal mining sector, largely because a customer 
remained under business rescue.

AEL secured two significant additional open pit contracts, effective 
from May and June 2016, and these are expected to assist the Company?s 
performance in the second half-year.

In initiating systems, the ISAP facility was fully loaded during the 
period and record detonator production of 11,6 million units was 
achieved in June. Improved trading conditions for gold and platinum 
miners enabled the increase.

In the rest of Africa, overall volumes were 1,7% lower. Most copper 
miners cut their production rates as a consequence of the 
lower copper price and unusually high rainfall in the DRC?s Katanga 
province curtailed output. A solid performance was achieved by 
AEL in the highly competitive markets of North and West Africa. These 
results were assisted by the effects of an improved gold price.

In AEL?s International business, mainly Indonesia and Australia, 
volumes grew by 7,4%. The businesses in both countries are profitable, 
albeit with margins remaining under sustained pressure.

Volumes sold to AEL?s largest customer in Indonesia stabilised. 
Operations at the BBRI facility in Indonesia, an ammonium nitrate 
plant in which AEL has a minority ownership stake (42,6%), were in 
line with expectations. Due to lower volumes mined by customers owing 
to persistently low thermal coal prices in the period, the facility 
was not fully optimised.

The issue regarding long cycles for input VAT refunds in Indonesia 
remains unresolved.

There was good volume growth in Australia, following the ramp-up of 
AEL?s manufacturing facility in Bajool, Queensland, in the first half 
of 2015. Additional products have been approved for use in
the Australian market and this will assist AEL in growing its 
position in the region.

AEL?s capital expenditure for the period was R147 million, of 
which R33 million was for investments at customer sites to 
support growth.

Specialty Chemicals
Specialty Chemicals delivered another robust result with a volume 
increase of 2,4% despite minimal growth in the local manufacturing 
sector. Most businesses in the segment delivered improved performances 
and there was particularly pleasing growth in Senmin, ImproChem, 
Chemical Initiatives, ChemSystems and SANS Technical Fibers. The 
operating margin was a pleasing 11,5% (2015: 12,1%).

Senmin, a supplier of mining chemicals and related services, increased 
its volumes by 6,3% as exports into the rest of Africa, Eastern Europe 
and Australia grew.

At ImproChem, a leading provider of water treatment solutions in Africa, 
solid results were achieved in most of the sectors in which the company 
operates notwithstanding the continued effects of severe drought 
conditions. Advances in servicing the public water sector in the rest 
of Africa were particularly encouraging.

Nulandis, which supplies agrochemicals to customers in South Africa 
and the rest of Africa, performed in line with expectations. It 
benefitted from the contribution of Farmers Organisation which was 
acquired with effect from 1 June 2015.

The inclusion of the results of Southern Canned Products, which was 
acquired with effect from 1 August 2015, contributed to the results of
the Food Additives and Ingredients strategic pillar. Lake Foods? 
performance, however, was compromised by adverse conditions in 
South Africa?s poultry industry.

Capital expenditure for the Specialty Chemicals segment was 
R67 million, of which R42 million was for expansion.

All land surplus to AECI?s operational requirements and available 
for redevelopment was disposed of in the prior two financial years. 
The Group?s remaining property activities comprise mainly the leasing 
of buildings and the provision of services at the Umbogintwini 
Industrial Complex in KwaZulu-Natal.

Results in the prior corresponding period included the bulk 
sale of the Somerset West site. Hence revenue from the Property 
segment declined to R195 million (2015: R607 million) and profit 
from operations was R44 million (2015: R393 million).

Cash utilisation
Capital expenditure, which was curtailed to below depreciation 
and amortisation for the period, was R236 million (2015: R272 million). 
Of this amount, R159 million was replacement capital.

Gearing at 17% was lower than June 2015?s 20% but higher than the 
13% level of December 2015. Concerted efforts to reduce net working 
capital yielded results, with the ratio to revenue at the end of the 
period having improved to 17,9% from 21,2% in June 2015. In the prior 
corresponding period, the proceeds from the Somerset West bulk 
transaction had yet to be received.

Cash interest cover was at 8,4 times (2015: 15,1 times) and was 
affected by higher interest rates and the share repurchase programme 
which was completed during the period. Consequently, net interest paid 
increased to R124 million (2015: R82 million).

During June 2016 R843 million in dividend proceeds from the Group?s 
African subsidiaries was repatriated to South Africa. These funds were 
used to settle short-term borrowings.

Share repurchase
AECI completed its share repurchase programme in May 2016. This
programme commenced in August 2015. The Company purchased 5% of its 
issued share capital, for a total of R601 million, in line with the 
shareholder authority approved at the Annual General Meeting (?AGM?) 
held on 1 June 2015. All the repurchased shares were cancelled. An 
authority to repurchase a further 5% of the issued capital, under 
specified terms and conditions, was approved by shareholders at the 
AGM on 30 May 2016.

Changes to the Board of Directors
Schalk Engelbrecht, Richard Dunne and Litha Nyhonyha have advised 
the Board of their intention to retire from their positions as 
Non-executive Directors of the Company. Schalk will retire as 
Chairman of the Company and the Board at the end of February 2017, 
Richard will retire at the Annual General Meeting of the Company?s 
shareholders in 2017, and Litha intends leaving the Board at the
end of December 2016.

Schalk has served as Chairman since 2012 and he was AECI?s Chief 
Executive from 2003 to 2008. He is also Chairman of the Nominations 
Committee and a member of the Remuneration Committee. His successor 
as Chairman will be appointed in due course. Richard joined the Board 
in 2007. He is currently Chairman of the Audit and Remuneration 
Committees, a member of the Nominations and Risk Committees and chairs 
the Financial Review and Risk Committee (?FRRC?) of the Specialty 
hemicals segment. Litha was appointed to the Board in 2006. He is 
currently a member of the Audit, Nominations and Remuneration 
Committees as well as a member of AEL?s FRRC.

Graham Dempster and Khotso Mokhele joined the Board as Non-executive 
Directors during the period, with effect from 31 January 2016 
and 1 March, respectively.

AECI is pleased to announce that Moses Kgosana will also join the 
Board as a Non-executive Director on 1 September 2016. He is past 
Chief Executive of KPMG in South Africa and was Chairman 
of KPMG Africa, representing the region on the KPMG EMA and KPMG 
International Boards. The Company welcomes Moses and looks forward 
to benefitting from his input and expertise.

Conditions in the global and local trading environment are likely to 
remain difficult. Growth rates are forecast to remain at low levels 
overall and there is no indication of any meaningful recovery in either 
commodity prices or the resources sector.

In South Africa, economic growth will also remain subdued, interest 
rates are in a moderate upward cycle, the rand exchange rate against 
major currencies remains weak and volatile, and uncertainty persists 
in the labour relations arena. A return to normalised rainfall patterns 
in the coming summer season will be a driving factor in the second half- 
year, particularly in the agricultural, food and beverage and general 
industrial sectors.

AECI believes that it is well placed to sustain its underlying performance. 
New contracts gained by AEL, the contributions of recent acquisitions, 
market share gains, and the benefits of a diversified portfolio and 
extensive geographic footprint are expected to assist. AECI?s businesses 
service a broad spectrum of customers in many countries, particularly 
in Africa. The Group has extensive logistics and warehousing capability 
on the continent and this competitive advantage continues to be leveraged.

The focus on the careful management of costs, working capital and capital 
expenditure will be maintained for the most effective cost base 
possible. In this regard, Group-wide collaboration, innovation and 
strategic sourcing initiatives are expected to deliver enhanced 
efficiencies and savings. The weak rand exchange rate presents
opportunities for exports and import replacements and these 
continue to be pursued.

Any forecast information contained in this announcement has not been
reviewed or reported on by the Company's external auditors.

Schalk Engelbrecht                      Mark Dytor
Chairman                                Chief Executive

Woodmead, Sandton
26 July 2016

Directors: S Engelbrecht (Chairman), GW Dempster, MA Dytor (Chief Executive)?, 
RMW Dunne**, Z Fuphe, G Gomwe***, KM Kathan (Financial Director)?, 
LL Mda, KDK Mokhele, AJ Morgan, LM Nyhonyha, R Ramashia.
??Executive     **?British   ***?Zimbabwean
Group Company Secretary: EN Rapoo

Notice to shareholders
Declaration of interim cash dividend no. 165
NOTICE IS HEREBY GIVEN that on Monday, 25 July 2016, the Directors of AECI 
declared a gross interim cash dividend of 135 cents per share in respect 
of the six-month period ended 30 June 2016. The dividend is payable on 
Monday, 5 September 2016 to holders of ordinary shares recorded in the 
register of the Company at the close of business on the record date, 
being Friday, 2 September 2016.

The last day to trade ?cum? dividend will be Tuesday, 30 August 2016 
and shares will commence trading ?ex? dividend as from the commencement 
of business on Wednesday, 31 August 2016.

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 114,75000 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 Tuesday,
30 August 2016.

The issued share capital at the declaration date is 121 829 083 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 Tuesday, 30 August 2016.

Share certificates may not be dematerialised or rematerialised from 
Wednesday, 31 August 2016 to Friday, 2 September 2016, both days inclusive.

By order of the Board
EN Rapoo
Group Company Secretary

Woodmead, Sandton
26 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 

Registered Office
1st floor, AECI Place
24 The Woodlands 
Woodlands Drive 

Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, cnr Fredman Drive and Rivonia Road, Sandton, 2196
Date: 26/07/2016 07:05:00 Supplied by www.sharenet.co.za                     
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