HULAMIN LIMITED - Trading Statement for the year ended 31 December 2020

Trading Statement for the year ended 31 December 2020

HULAMIN LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1940/013924/06
JSE Code: HLM
ISIN: ZAE000096210
(“Hulamin” or the “Company”)

TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Trading Statement
In terms of paragraph 3.4(b) of the JSE Listings Requirements, the board of directors of Hulamin
advises that there is a reasonable degree of certainty that the financial results for the year ended
31 December 2020, when compared with the published financial results for the year ended
31 December 2019, will differ as follows:

                               31 December 2020             Change from 2019 actual to            31 December 2019
                                         Expected                  2020 expected range                        Actual
 Loss per share                 Between (69) and              Improved by between 82%                 (380) cents per
                                    (77) cents per           (being 311 cents per share)                       share
                                            share         and 80% (being 303 cents per
                                                                                  share)
 Headline loss per              Between (64) and              Improved by between 16%                    (76) cents per
 share                             (70) cents per        (being 12 cents per share) and                          share
                                           share           8% (being 6 cents per share)
 Normalised headline            Between (86) and            Worse by between 78 cents              (8) cents per share
 loss per share1                   (95) cents per             per share and 87 cents per
                                           share                                   share
¹ Normalised headline earnings per share is calculated in a consistent manner as per the latest annual financial statements,
   by dividing normalised headline earnings by the weighted average number of ordinary shares in issue during the year.

   Normalised headline earnings is defined as headline earnings excluding (i) metal price lag and (ii) material non-trading
   expense or income items which, due to their irregular occurrence, are adjusted for in order to better present earnings
   attributable to the ongoing activities of the group. The presentation of normalised headline earnings is not an IFRS
   requirement and may not be directly comparable with the same or similar measures disclosed by other companies.

Having implemented turnaround actions initiated in 2019, both Hulamin Rolled Products and Hulamin
Extrusions started 2020 with expectations of improved performance. However, sales volumes were
measurably disrupted due to the impact of Covid-19 and consequent lockdowns. As a businesses with
high fixed costs, these disruptions to both sales and manufacturing resulted in losses in the first half.
The external environment improved as tight lockdown regulations were partially lifted in the second
half.

Increases in the Rand value of aluminium and the consequent working capital requirements, the
withdrawal of customer supply chain financing arrangements and losses in the first half, all
contributed to cash outflows.

The improvement in the expected loss per share over 2019 is largely due to the impairment of
property, plant and equipment in 2019 that was not repeated in 2020. The improvement in the
expected headline loss per share is largely due to the once-off restructuring costs in 2019, the
favourable 2020 metal price lag and the lower 2020 depreciation that were partly offset by lower 2020
sales volume. The decline in the expected normalised headline loss reflects the lower 2020 sales
volume owing to COVID-19.

2020 Annual Results are scheduled to be released on Wednesday, 14 April 2021 at 10h00 with a
management presentation to stakeholders to follow at 13h00.

The financial information contained in this trading statement is the responsibility of the directors and
has not been reviewed or reported on by the Company´s external auditors.


Pietermaritzburg
9 April 2021


Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 09-04-2021 04:01:00
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