Presentation toFinal results presentation for the year ended 28 February 2013

Johannesburg roadshow: 9 May 2013Cape Town roadshow: 13 May 2013

Presentation coverage

2

• Diversifiedopen cast miner and materials supplier

• “Delivering consistent growth”

• Market conditions confidence is returning

• Excellent cash conversion

• Strong balance sheet

• Consistent dividend

• Acquisitionspaying off

• Market remains under pressure

• Strategy execution underpins sustained performance

and financial

Group overview

and financial summary

• Strategy & rationale• Infrasors• Clinker• BEE

Corporate activity

Our environment and industry

trends

Financial performance and what lies

The future and what lies

ahead

Group overview and financial summary

3

Leading black empowered open cast miner and materials supplierStrategically diversified through location and product range

Group overview

4

Founded from strong private companiesPrima Klipbrekers (1963)Lancaster Quarries (1965)Malans QuarriesDenver

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Strategic history

JSE Listing (2006)Narrow focus – building materialsMainly coastal provincesFormation of proper governance

Geographic expansion (2007 – 2010)Smaller acquisitionsWell executed national positioningBroad infrastructure focus

Growth towards niche products (2011 onwards)Glen Douglas (Jan 2011)Clinker Group (Mar 2012)Infrasors (Mar 2013)

Geographic expansion (2007

Growth towards niche products (2011 onwards)

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Strategy

6

2013 2013 Afrimat contributors to profit

Dive

rsifi

ed g

roup

AggregatesAggregates Industrial Minerals ContractingContracting Concrete

Products Readymix

50 years of management experience in the industry with knowledge to 50 years of management experience in the industry with knowledge to pre-empt changes in order to protect growth

Based on a healthy value system and culture of teamwork

… portfolio … and footprint

CONCRETE PRODUCTSConcrete brick & block factories (9)

READYMIXBatching sites (17)

MINING & AGGREGATESCommercial quarries (24)Sand and gravel mines (8)

Dolomite mines (2) *Clinker (1)

Limestone mine (1) *Silica mines (2) *

( *Includes Infrasors )

… which generates a balanced consistent income stream

CONTRACTING Mobile Crushing

Drilling & Blasting

7

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 (niche products)

Operations with structural cost advantage

Innovation and creativity

Operational & marketing expertise

8

Year at a glance

Solid contribution from Glen Douglas and Clinker Group

Cash conversion rate of 1.64

Dividend cover maintained

Good progress in niche product strategy

Strong balance sheet to support and underpin strategy

Lower volumes in traditional aggregates business

9

Financial highlights

Revenue 34.3% to R1.3 bn

HEPS 22.8% to 76.9 cps

Net asset value 13.4% to 532 cps (NTAV 424 cps)

Net debt : equity ratio 4.67%

Net cash from operating activities 16.0% to R169.8 m

Total dividend 28 cps (up 47.4%)

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Results do not include Infrasors (effective 1 March 2013)

Environment and industry trends

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0

10

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100

Mar

-97

Sep-

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ar-9

8Se

p-98

Mar

-99

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ar-0

0Se

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Mar

-01

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Mar

-07

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ar-0

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-09

Sep-

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ar-1

0Se

p-10

Mar

-11

Sep-

11M

ar-1

2Se

p-12

Mar

-13

Building Confidence Index

12Source : Bureau of Economic Research, 2013Q1

Overall confidence increased 5 points to 37 (remains below average of 46)

Increased demand for building material

Traction felt in recovery of building sector

Civil Confidence Index

13Source : Bureau of Economic Research, 2013Q1

Overall confidence increased 15 points to 51 (> average of 48)

Highest level in last 4 years

0

10

20

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Mar

-97

Sep-

97M

ar-9

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Mar

-99

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ar-0

0Se

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Mar

-01

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01M

ar-0

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ar-0

4Se

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-07

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ar-1

0Se

p-10

Mar

-11

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11M

ar-1

2Se

p-12

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Civil tendering competition

14Source: BER, RMB Morgan Stanley Research

Macro environment

International:European economic woes remain

China and India showing signs of slower growth

USA – slow growth at best

In South Africa:Build up to elections

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

Excellent opportunities for business expansion

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Trends in Afrimat’s markets

Increase in building construction activitySales to readymix companies countrywide increased

High tender activity in most market segments

Industrial and niche markets more stable than construction materials

Spending on roads remain strong (e.g. Northern Cape, Free State)

Strong pipeline, specifically government infrastructure and renewable energy

Exciting opportunities

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Financial performance

17

Income statement

R’000 Reviewed Feb 2013

Audited Feb 2012

% change

Revenue 1 337 585 996 137 34.3%

Contribution from operations 152 483 124 240 22.7%

Contribution from operations margin 11.4% 12.5%

Taxation (40 639) (38 976) 4.3%

Profit for the year 103 778 90 917 14.1%

18Clinker Group results included with effect from 1 March 2012

Income statement (cont’d)

Operating profit (R’000)Revenue (R’000)39

2 51

7

455

874

506

717

671

34938

5 49

9

398

622

489

420 66

6 23

6

0100 000200 000300 000400 000500 000600 000700 000800 000900 000

1 000 0001 100 0001 200 0001 300 0001 400 000

2010 2011 2012 2013

1st half 2nd half

66 5

88

64 3

29

65 5

21

75 6

23

42 3

36

45 2

68 64 6

09 72 2

11

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

2010 2011 2012 2013

1st half 2nd half

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34.3%

13.6%

Segmental contribution from operations

R 117.5

R 27.3

R 10.0

-R 2.3

R 152.5

Mining & Aggregates

Concrete Products

Readymix Other All operations-R 20.0

R 0.0

R 20.0

R 40.0

R 60.0

R 80.0

R 100.0

R 120.0

R 140.0

R 160.0

R 180.0

20

Mill

ions

Headline earnings per share

21

Cen

ts p

er s

hare

40.5

51.3 53.5

62.6

76.9

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013

HEPS for the full year

22.8%

R’000ReviewedFeb 2013

Audited Feb 2012

% change

External revenue 846 388 704 509 20.1%

Contributions from operations 117 480 105 760 11.1%

Contribution from operationsmargin

13.9% 15.0% 77.0 %

Contribution from operations

Mining & AggregatesPerformance

Solid contribution from Glen Douglas and Clinker SuppliesVolume decline in construction aggregates Reasonable price increases in most productsMedupi and Kusile contracting activities beginning to diminish

R152.5 m

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Mining & Aggregates

Mining & Aggregates revenue sources

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Roads & Rail

22%

Railway

2%

Building & Concrete

Construction

33%

Concrete Products

18%

Readymix

9%

Cash Sales

7%

Agricultural

1%

Steel Manufactures

8%

Market Segment Mar. 2012 – Feb. 2013 by Revenue

Civil Construction

Railway

Building Construction

Concrete Products

Readymix

Cash Sales

Agricultural

Steel Manufactures

Performance:Pricing remained steady

SA Block included as from 1 March 2012

R’000ReviewedFeb 2013

Audited Feb 2012

% change

External revenue 285 994 116 112 146.3%

Contribution from operations 27 295 13 145 107.6%

Contribution from operations margin 9.5% 11.3%

77.0%

17.9%

Contribution from operations

Mining & Aggregates

Concrete Products

R152.5 m

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Concrete Products

R’000ReviewedFeb 2013

Audited Feb 2012

% change

External revenue 205 203 175 516 16.9%

Contribution from operations 9 996 8 182 22.2%

Contribution from operations 4.9% 4.7%

77.0%

17.9%

6.6%

Contribution from operations

Mining & Aggregates

Concrete Products

Readymix

R152m

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Performance:Increased sales volumes experienced

Benefitted from increased demand in Government low cost housing

Readymix

R’000 Audited Feb 2013

Audited Feb 2012

% change

Property, plant and equipment 503 615 425 906 18.2%

Mining licenses and goodwill 154 405 114 355 35.0%

Inventories 89 490 71 827 24.6%

Trade and other receivables 195 788 163 548 19.7%

Cash 134 261 132 557 1.3%

Other assets / BEE funding 123 704 92 184 34.2%

1 201 263 1 000 377 20.1%

Strong focus on working capital remains in place

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Financial position - assets

R’000 Audited Feb 2013

Audited Feb 2012

% change

Total equity 761 853 671 906 13.4%

Borrowings 120 684 81 590 48.0%

Provisions 33 725 31 260 7.9%

Overdraft 49 119 18 147 170.7%

Trade and other liabilities 151 983 117 052 29.8%

Other liabilities / deferred tax 83 899 80 422 4.3%

1 201 263 1 000 377 20.1%

Net debt : equity ratio = 4.67%

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Financial position – equities & liabilities

Rand

s

28

Net cash from operating activities

Net cash at end of period: R85.1m (2011 : R114.4m)

72 587

134 757 130 580

146 343

169 764

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

2009 2010 2011 2012 2013

Dividends

Dividend cover at 2.75 (legislative change impact) Afrimat remains

mindful of shareholder

returns

Cen

ts p

er s

hare

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13.0

16.0 17.019.0

28.0

4.0

9.0

14.0

19.0

24.0

29.0

34.0

2009 2010 2011 2012 2013

Total dividend

Share repurchase update

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Number of shares repurchased

F2009 627 500

F2010 2 542 451

F2011 1 751 230

F2012 995 664

F2013 1 181 523

F2014 612 633

Total repurchased cumulatively 7 711 001

5 932 306 shares used for part payment of Clinker Group1 163 604 shares used for first share incentive scheme settlementAfrimat will continue to actively manage share repurchases to optimise value

BEE update

BEE ownership remains at 26.1%

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

Afrimat BEE Trust purchased 6.4 million shares from Mega Oils SPV

Afrimat provided funding (R40 million)

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

21.25% of Afrimat owned by black employees

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Corporate activity driven by strategy

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Acquisitions: the underlying strategy

The goalEnhance sustainability, diversity, profitability and robustness

TargetsAcquisition purchase consideration below 15% of Afrimat market cap

In Afrimat’s space of expertise

Must have high upside

Must strengthen Afrimat

Must fit strategically into our master plan

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Impact of acquisitions

34

Defensive product diversification

Industrial minerals with vast applications

Attractive margins and strong profitability

Life of mine: >30 years

Current year’s return on initial capital: approximately 80%

Glen Douglas

Niche product

Vast applications

Attractive margins and strong profitability

Life of project: 10 years

Current year’s return on initial capital between 35% – 40%

Clinker

Infrasors transaction

Acquired 50.7% (control) at 35 cps amounting to R32 million

Control taken 1 March 2013

Mandatory offer to minorities at 35 cps (discount to JSE share price)

Payment made from cash resources

Afrimat CEO and FD on Infrasors board as non-executive directors

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Conditions precedent satisfiedABSA funding (ring -fenced) – no material changes to

debt facilities, pricing or repayment terms

Infrasors transaction – on the ground

Afrimat appointed Integration Manager to oversee all operations

Major turnaround project

Introducing Afrimat way, culture and values

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Infrasors operations Location ProductLyttelton Centurion Mine Centurion (Gauteng) DolomiteMarble Hall Mine Marble Hall (Limpopo) LimestoneDelf Sand Delf (Gauteng) Silica SandDelf Silica Coastal Tongaat (KwaZulu Natal) Silica Sand

Why the Infrasors acquisition?

37

Assets with niche products

Geographically well situated

Very good upside after turnaround

Excellent strategic fit

Downside risk ring-fenced

Prospects

38

What differentiates us

Strong financial position:Healthy cash flowStrong balance sheetIndustry leading margins throughout economic cycle

Active innovative strategic positioning:Good market intelligence and expertiseContinuously identifying and evaluating opportunitiesTrack record of successful acquisitionsSuccessful greenfield projects

Operational competence:FlexibleReliable quality supplierSuperior reaction time

39

Prospects

Short term outlook: Contribution from the Infrasors acquisitionGlen Douglas and Clinker remains solidRecovery in traditional businessMarket remains under pressure

Momentum drivers:Renewable energyRoads – SANRAL, provinces Infrastructure projects (e.g. Rail project)Low cost housingIndustrial minerals

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

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Risk mitigation

Risk Mitigating action

Labour unrest Drive to create a unique and positive culture

Communication & upliftment

BEE share scheme

Construction companies under financial pressure

No single dominant debtor

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

Q & A

Thank you for your attendance and participation

www.afrimat.co.za

For any further Investor Relations questions please contact:

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

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

Appendix

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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

44

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)

45

Supply market segments

Transport infrastructure:Road and bridge buildingRailroads

Industrial minerals:Steel makersCoal minesFoundriesGlass makersCeramics

Energy infrastructure:Power stations (e.g. Medupi)Renewable energy projectsPower distribution network

46

Supply market segments (cont’d)

Building and Civils:Government funded

Affordable housing

Schools, hospitals

Water reticulation

Private funded

Commercial, industrial and mining

Residential

Agriculture:Agricultural lime

Drainage stone

Paving

47