‘Small Talk’ – Small and Medium Market Cap Conference26 February 2013

Presentation coverage

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• Diversified open cast miner and materials supplier

• “Delivering consistent growth”

• Focus on smaller sized projects adds to Afrimat’s sustainability

• Excellent cash conversion

• Strong balance sheet

• Consistent dividend payer

• Acquisitions paying off

• Market remains under pressure

• Diversification underpins sustained performance

Who we are and what we

do

• Strategy & rationale• Clinker• Infrasors• BEE

Corporate activity

What is happening in

our environment

How are we performing financially

The future and what lies

ahead

Leading black empowered open cast miner and materials supplier

Strategically diversified through location and product range

Group overview

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Afrimat’s products

Products from mines:

Aggregates (crushed stone)

Metallurgical dolomite

Metallurgical quartzite

Agricultural lime

Clinker

Products from factories:

Concrete blocks

Concrete bricks

Pavers

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Products from readymix batch plants:

Readymix concrete

Readymix mortar

Services by the contracting team:

Contract crushing

Mobile screening

Drilling

Blasting

Afrimat’s products (cont’d)

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Supply market segments

Transport infrastructure:

Road building materials

Materials for railroads (e.g. ballast)

Industrial minerals:

Metallurgical dolomite

Quartzite

Energy infrastructure:

Materials for power stations (e.g. Medupi)

Materials for renewable energy projects

Materials for distribution network

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Supply market segments (cont’d)

Building materials:

Affordable housing (Government funded)

Commercial building

Residential (Privately funded)

Agriculture:

Agricultural lime

Drainage stone

Paving

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… portfolio … and footprint

CONCRETE PRODUCTSConcrete brick & block

factories (9)READYMIX

Batching sites (17)

MINING & AGGREGATESCommercial quarries (24)

Sand and gravel mines (8)

Dolomite mine (1)

Clinker (1)

… which generates a balanced consistent income stream

CONTRACTING Mobile Crushing

Drilling and Blasting

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Our diversification

Strategic principles

Diversified:

Wide product range

Across wide geographic markets

Effective hedge against market volatility

Competitive advantage:

Geographic location

Unique and scarce products or

Operations with structural cost advantage

Innovation and creativity

Operational expertise

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Corporate Activity

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Acquisitions: The underlying strategy

The goal

Enhance sustainability, profitability and robustness

Targets

Acquisition purchase consideration below 15% of Afrimat market cap

In our space of expertise

High upside

Compensate for our weaknesses

Must fit strategically into our master plan

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Infrasors transaction

Acquired 50.4% (control) at 35 cps amounting to R32 million

Competition Commission approved transaction

Infrasors:

Listed resources group involved in mining and beneficiation of minerals used in the industrial, metallurgical, mining and construction sectors

Lyttelton Centurion Mine – opencast mining and beneficiation of a dolomite ore-body

Marble Hall Mine – opencast mining and beneficiation of a limestone (metamorphosed dolomite) ore-body

Delf Sand – sand extraction and beneficiation of alluvial silica sand

Delf Silica Coastal – sand extraction and beneficiation of alluvial silica sand

Conditions precedent

ABSA (ring fenced) – no material changed to debt facilities, pricing or repayment terms

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Infrasors transaction (cont’d)

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Rationale (product and assets)

Augment Afrimat’s industrial minerals diversification strategy

Add to the aggregates product offering

Expand geographic footprint

Operational involvement

Afrimat manager appointed to oversee operations

Take control of board

Implement Afrimat’s proven management, marketing, product development and pricing strategies

Implement a proper BEE scheme

Clinker Group acquisition

Effective 1 March 2012

Purchase consideration R121 million (R95 million in cash and R26 million shares)

F2012 PAT = R35.1 million

Business with unique competitive advantage

Already well integrated into Afrimat

Life expectation of operation is 10 years

Marketing and research drive shows possibility of extending life of mine

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Clinker Group

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16

Clinker Group (cont’d)

Impact of acquisitions

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Open pit dolomite mine in Gauteng (metallurgical dolomite, aggregates, agricultural lime)R35 million purchase consideration

Defensive product diversificationIndustrial minerals with vast applicationsAttractive margins and strong profitabilityLife of mine: >30 years

Glen Douglas

Clinker Supplies and SA Block (brick & block manufacturing) in GautengProcessor of clinker material – used in manufacture of concrete productsR121 million purchase consideration

Product diversification which adds to current product line with geographic diversificationVast applicationsAttractive margins and strong profitabilityLife of project: 10 years +

Clinker

BEE update

BEE ownerships is 26.1% (including 6.4 million shares purchased)

Mega Oil SPV’s 7-year lock-in period expires November 2013

Afrimat BEE Trust purchased 6.4 million shares from Mega Oils

Afrimat provided funding (R40 million)

Purchased shares prior to expiry date to eliminate any BEE risk to mining rights

21.25% owned by black employees

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Business Environment

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Macro environment

Slower growth:

European economic woes continue

China and India showing signs of slower growth

USA – slow growth at best

In South Africa:

Increasingly exposed to a more uncertain China

Internal growth dynamic is fragile

Downgraded by credit agencies

Government’s focus on infrastructure backlog will act as economic stimulus when implemented

Excellent opportunities continue to present themselves

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Trends in Afrimat’s markets

Difficult time for aggregates business

Western Cape slow and under pressure

Diversification strategy has assisted Afrimat performance

Strong increase in tender activity in most market segments

Industrial markets stable, not as competitive as construction

Action against incompetent government departments (e.g. Provincial roads to SANRAL)

Strong pipeline, specifically government infrastructure (small to medium sized projects)

Exciting opportunities

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GDP by sector

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-15

-10

-5

0

5

10

15

20

Mining Manufacturing Construction Wholesale and retail trade Transport, storage and communication

Finance, insurance and real estate

% y/y

Source: SARB, Standard Bank

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Financial Overview

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Financial highlights

Operating profitRevenue

2010 2011 2012 2013 -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

392

,517

455

,874

506

,717

671

,349

385

,499

398

,622

489 420

1st half 2nd half

2010 2011 2012 20130

20,000

40,000

60,000

80,000

100,000

120,000

140,000

66,5

88

64,3

29

65,5

21

75,6

23

42,3

36

45,2

68 64 609

1st half 2nd half

15.4%

32.5%

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Segmental contributions to revenue

Mining & Ag-gregates

Readymix Concrete Products0%

10%

20%

30%

40%

50%

60%

70%

80%71%

17%12%

67%

14%19%

HY2011HY2012

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Returning to previous levels

Headline earnings per share

Cen

ts p

er s

har

e

2008 2009 2010 2011 2012 -

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

24.5

29.6 29.9 29.8

35.0

HEPS for the six months

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17.4%

Rand

s

2007 2008 2009 2010 2011 20120

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

77,378

39,337

51,305

34,222

52,712

86,860 64.8%

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Net cash from operating activities

Net cash at end of period: R106.4m (2011: R63.7m)

Dividends

Afrimat remains a consistent dividend

payer

Cen

ts p

er s

har

e

2008 2009 2010 2011 2012 20134.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

7

5

6 6 6

8

Interim dividend

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What differentiates us?

Strong financial position:

Healthy cash flow

Strong balance sheet

Industry leading margins throughout economic cycle

Active innovative strategic positioning:

Good market intelligence and expertise

Continuously identifying and evaluating opportunities

Track record of successful acquisitions

Successful greenfield projects

Operational competence:

Flexible

Reliable quality supplier

Superior reaction time

Operating margin 13,2% vs. industry average 6,4%

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Risk mitigation

Risk Mitigating action

Slow delivery on Government infrastructure projects

Widely diversified over markets, products and locations

Actively seeking and exploiting opportunities

Construction companies under financial pressure

No single dominant debtor, all less than 4%

Strict efficient credit control

Macro-economic threats Constant strategic management (avoiding threats, exploiting opportunities)

Entrepreneurial culture and creative innovative solutions

Strong balance sheet

Country risk in South Africa Seeking opportunities outside South Africa

What does the future hold?

Prospects

Short term outlook:

Clinker group exciting

Glen Douglas a real gem

Remainder of the market conditions remain under pressure

Integration of Infrasors acquisition

Momentum drivers:

Power stations

Low cost housing

Roads – SANRAL, provinces

Renewable energy

Industrial minerals

Afrimat will pursue a conservative growth strategy preserving the status of the balance sheet

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Take away

Afrimat will pursue a conservative but strategic diversified growth strategy

Preserve the status of the balance sheet

Continue to deliver high cash conversion rates

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Final results due to be released during week of 6 May 2013

Q & A

Thank you for your attendance and participation

www.afrimat.co.za

For any further Investor Relations questions please contact:

Andries van Heerden (CEO): 021-917-8840 or

Vanessa Rech (Keyter Rech Investor Solutions): 011-447-8656

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