Afrox Annual Results Presentation 2017

ANNUAL RESULTS
PRESENTATION 2017
for the period ended 31 December 2017

Contents
Investor presentation 1
Commentary 27
Financial features 27
Summarised audited consolidated income statement 33
Summarised audited consolidated statement of comprehensive income 34
Summarised audited consolidated statement of financial position 35
Summarised audited consolidated statement of cash flows 36
Summarised audited consolidated statement of changes in equity 37
Segmental report 38
Statistics and ratios 39
Selected notes to the summarised audited consolidated financial statements 40
Corporate information 44

1
POSITIONED FOR GROWTH
African Oxygen Limited
YEAR-END RESULTS PRESENTATION 2017

2
1. Performance Summary
2. Performance Drivers
3. Afrox Financial Results Analysed
4. Afrox Summary & Outlook
5. Appendices
Presentation Outline

3
PERFORMANCE SUMMARY
RESULTS PRESENTATION 2017

4
2017 Financial Performance
Top 10 Highlights
1) Excl. non-recurring item, litigation settlement with AMSA in H2 2016 (Effects to Revenue: R165m, EBITDA: R161m)
2) GPADE = Gross Profit after Distribution expenses
 Revenue up 2.8% from volume & price, 6.0% excl. non-recurring items1) and 6.2% excl. ∆ LPG market prices
 Strong price / cost-inflation recovery contributing to Afrox revenue growth
 EBITDA down -4.4% or 9.9%1) up with underlying margin improvement of 80bps to 20.8%
 Operating Cash Flow of R414m declined by 27.7% vs PY or +0.5% (R2m) on a comparable basis1)
 HEPS up 6.1% (201.0 cents) vs. PY with underlying +32.3%1) and EPS 5.3% (203.6 cents) or +30.7%1)
 ROCE at 23.7% with an underlying improvement of 370 bps1)
 Atmospheric Gases with underlying growth in revenue of 6.0%1) from improvements in most sectors
 LPG revenue grew by 11.0% (11.6%1)) from higher volumes and at 21% GPADE margin equal to PY
 Hard Goods revenue reduction of -0.9% with margins up by 190bps from better pricing
 Emerging Africa revenue (+0.1%) impacted by currency at stable volumes but GPADE2) up by 6.5% YoY

5
Performance 31 December 2017
Highlights
1) Without effects from LPG market prices (-R12m), underlying revenue improved by +3.0% or 6.2% and excluding litigation settlement with AMSA
ZARm 2017 2016 YoY
YoY adj. for non
recurring items 2)
Revenue 5 693 5 537 +2.8%¹) +6.0%¹)
GPADE 1 770 1 775 -0.3% +9.7%
EBITDA 1 183 1 237 -4.4% +9.9%
EBITDA margin 20.8% 22.3% -150bps +80bps
Operating Cash Flow 414 573 -27.7% +0.5%
Headline EPS (cents) 201.0 189.4 +6.1% +32.3%
Reported EPS (cents) 203.6 193.3 +5.3% +30.7%
ROCE 23.7% 24.6% -90bps +370bps
▪ Revenue growth of 6.0%1) (or 2.8%) from higher volumes in LPG and Industrial Gases and good price cost inflation management
▪ EBITDA improves by 9.9%2) (or -4.4%) from flow through of higher volumes, prices cost recovery and increased efficiencies
▪ Operating Cash Flow with strong performance YoY
▪ HEPS increased by 32.3%2) (or 6.1%)
▪ EPS increased by 30.7%2) (or 5.3%), both from higher profits and interest earned
▪ ROCE continued its increase by 370bps2) (or -90bps) to 23.7% from better business performance and asset optimisation

6
▪ Free cash flow with underlying improvement of R51m1) vs. 2016
▪ Net debt relative to EBITDA at continued low levels from strong cash generative business
▪ ROCE with underlying improvement of 370bps1) from higher profits and Balance Sheet optimisation
Cash Flow 2017 vs. 2016 2017 Financial KPIs
ZAR m 2017 2016 ∆ in %
Operating cash flow 414 573 -27.7%
Investments/Financing (223) (272) 18.0%
Free cash flow 191 301 -36.5%
Cash at the end of the period 1,344 1,153 +16.6%
-0.3-0.1
0.1
0.60.7Net Debt/
EBITDA
23.7
20.0
16.7
11.112.2
ROCE in %
2016201520142013 2017
1)
Financial Performance: Key Indicators
Strong financial position with negative debt & improved ROCE

7
1) Excluding non-recurring item, litigation settlement with AMSA in H2 2016 (Effects to Revenue: R165m, EBITDA: R161m)
2) Excluding change in LPG market prices
3) Excluding effects from currency and changes in LPG market prices
2,283
2017
2,319
2016
-1.6%
-10.5%
777
2016 2017
868
37.4% 34.0%
GPADE
% Margin
Revenue
Atmospheric Gases
+11.0%
1,994
20172016
1,797
+15.2%
425
2017
369
2016
20.5% 21.3%
LPG
2016 2017
-0.9%
666 660
+4.3%
2017
232
2016
242
34.8% 36.7%
Hard Goods
756
20172016
755
+0.1%
326
2016
+6.5%
2017
306
40.5% 43.1%
Emerging Africa
[ZAR m]
+9.9%1)
+6.0%1) +11.6%2) +2.0% 3)
+12.0%3)
Business Performance
Improved performance in FY 2017 across all segments

8
PERFORMANCE DRIVERS

9
Efficiences
Cost Inflation
Price/Volume
EBITDA 20161) 1.076
+107
(+9,9%)
EBITDA 2017 1.183
Headwinds
Currency
▪ Political instability
▪ CO2 supply chain challenges
▪ Plant reliability
LowMediumHigh
Headwinds 2017 results
2016 2017
1) Excl. non-recurring item, litigation settlement with AMSA in H2 2016 (Effects to Revenue R165m, EBITDA R161m)
[ZAR m]
EBITDA Development 2016 to 2017
A combination of better volume and cost inflation management

10
350
389
438
2016 20172014-15 AVG 2018 Estimates
298
Replacement & Maintenance
SHEQ
Customer InstallationsAfrox spent on average 6.9% CAPEX to its Sales between 2014 and 2017
▪ Port Elizabeth plant
finalisation with on-
stream date June ’15
▪ Hydrogen facility
Pelindaba
▪ Roll out Afrox Individual
Cylinder Tracking system
▪ Build up new filling site
Riverhorse, Durban
▪ Emerging Africa –
Micro-filling plants
▪ > 100k LPG cylinders
▪ Commission new state
of the art filling site at
Riverhorse, Durban
▪ Automated filling for
Healthcare cylinders
▪ Pretoria ASU upgrade
▪ New Mozambique
Maputo site
▪ Zambia Micro-fill plant
▪ Witbank plant upgrade
▪ PetroSA Catox
▪ Columbus Argon tanks
▪ Integrated cylinder
valves
▪ Various new customer
installations/bulk tanks
▪ IT software and hardware
upgrade
▪ Various ASU plant
upgrades
▪ BIO CNG project
▪ Upgrade distribution
fleet for bulk and
cylinders
▪ Various new customer
Installations/bulk
tanks
~25%
~65%
~10%
[ZAR m]
Investments – CAPEX 2014 to 2018 Estimates
Focus on asset maintenance & profitable growth

11
* CPI SA source: www.statssa.gov.za
▪ 2015 implementation of SWIFT
turnaround programme
▪ 2016 majority of benefits
realised
▪ SWIFT became broad based
management programme to
change company culture and
behaviour along a set of values
▪ 2017 various process
improvement initiatives under
the umbrella of SWIFT continue
to generate sustainable savings
▪ SWIFT has been established as
Afrox’s essential programme for
Business Excellence
915917971
0
50
100
150
2015 20172014
1.141
2016
606
450
144
201720162015
Gross Cost Savings cumulative
Other Operating Expenses
Other Operating Expenses indexed (2014 = 100)
CPI SA indexed (2014 = 100)
[ZAR m]
SWIFT Programme Delivered Gross Cost Savings of R606m
Good cost management supports growth in earnings

12
Prev. Latest
Atmospheric Gases Improve profitability
New CO2 sources
Increase asset utilisation and reliability
Go-to-market strategy
Growth in new applications
Price Cost Recovery 100% of cost inflation
LPG Leading margin management
Security of supply
Return on investment in cylinders
Go-to-market model relative to industrial gases
Ongoing focus on controlling illegal fillers and risk
Emerging Africa Reduce supply chain costs and increase customer supply security
Infrastructure in place for growth
Ensure critical mass per country and improvement in governance
Sales capability development
Hard Goods Explore new markets
Right size fixed costs to throughput
Grow and defend local volumes
Not started Work in progress Complete
Progress Against Strategic Topics
By end of 2017 Afrox closed majority of it’s strategic items from the
2015 turnaround

13
▪ The total number of recordable injuries continued
to trend downwards, we achieved a record low for
2017
▪ MIRs have reduced significantly since 2012
▪ Over 40% of the incidents in 2017 are related to
security (7) a focused action plan has been
implemented
▪ Our continued efforts in Safety Awareness training
and intervention support the positive trend noted
since 2012
1) A MIR is an incident with a major outcome and consequenceswhich represents a significant non-compliance with Afrox's Safety, Security, Health, Environment and Quality (SHEQ) Policy
24 23 24
21
7
3
7
4
9
7 4
1
1 1
5
7
2009 2010 2011 2012 2013 2014 2015 2016 2017
MIR trend¹)
2
Security
Other
SHEQ Performance
Recordable injuries continued to reduce since 2009
40
61
45
61
31
22 24 25
18
2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Recordable injuries: 2009-2017
3

14
FINANCIAL RESULTS ANALYSED

15
▪ Market conditions have improved relative to 2016 with
the elimination of supply constraints and uptick in
volumes in most business areas
▪ Improved pricing discipline drives recovery of cost
inflation
▪ Underlying margin improvement despite higher
production costs from unplanned plant shutdown during
Q1 & Q4 2017
▪ Beverage sector impacted by downtime at our major CO2
plant
▪ Steel industry sector includes once off settlement in 2016
▪ Healthcare growing by 4% overall from better volumes
▪ Other grew by 14% from various Industrial Gas customers
35.8%36.6%
Atmospheric Sales by Market Sector
495 564
346
361
195
199
698 549
186 191
312 329
2,283
88
Food & Beverages
2017
Automotive
2,319
Mining
Healthcare
2016
Petrochemical
86
Other
Steel Industry
868 777
2,283
-1.6%
GPADE
-10.5%
2017
2,319
2016
Financials
Sales
(37.4%) (34.0%)
1) Excluding non-recurring item, litigation settlement with AMSA in H2 2016 (Effects to RevenueR165m, EBITDA: R161m)
+9.9%1)
+6.0%1)
+5%
+3%
-21%
+2%
+2%
+14%
+4%
+3%1)
Atmospheric Gases
Underlying revenue increase from higher volumes at better margins
despite unplanned plant shutdown

16
▪ Combination of higher imports and additional investment in
cylinder
▪ Customer demand and reliable supply drives volume growth
▪ Revenue up by 11.6% at comparable market prices
▪ Margin management further improved
Volume (KT) Development 2015-17
425369
1,994
+11.0%
+15.2%
GPADE
20172016
1,797Sales
(20.5%) (21.3%)
Financials
Import vs. Local Refineries 2016 vs 2017
50.6 51.3 54.1
79.8 75.1
85.4
+10.4%
-3.1%
2017
139.5
2015
130.4
2016
126.4
Cylinder
Bulk
1) Excluding change in LPG market prices
17%
10%
2%
35%
12%
24%
8%
23%
29%
22%
12%
6%
IVSRef I Ref II Ref V Ref VIRef III
2016 2017
+35%
+11.6%1)
LPG
Strong performance with continued growth in volumes from stable
supply chain and at better margins

17
▪ Overall volumes impacted by infrastructure, mining and
manufacturing
▪ Revenue growth in most sectors from broad portfolio
▪ Ability to recover cost inflation through value chain
▪ Good volumes at most of Afrox’s factories lead to economies
of scale
232 242GPADE
666
20172016
+4.3%
660
-0.9%
Sales
Financials
(34.8%) (36.7%)
Imports vs. Local Manufacture & Sector Development
(38%)(34%) (33%) (34%)(42%) (35%)
42%
46%
13%
88 86
106 110
127 132
160 141
7268
35 38
54 53
Mining
2017
Metals Industry
Retail
Petrochemical
Automotive
Construction & Manufacturing
Food & Beverages
Other
666 660
28
2016
28
Imports
Local Manufactured
Local Sourced
-12%
+4%
+4%
-2%
+6%
-2%
+9%
Hard Goods
Margins improved from good product mix & efficient
production footprint

18
▪ Reported financials impacted by currency effects, LPG
pass through, and stock provision changes
▪ Underlying Sales (excl. impact of LPG pass through and
currency translation) up 2% and GPADE up 12% 1)
306 326
+6.5%
+0.1%
2016
756
GPADE
2017
755
Financials Underlying Performance
▪ Good underlying results, adversely impacted by
changes in currency
▪ Strong recovery of cost inflation across all countries
▪ Namibia has seen lower demand from reduced
economic activity, however offset by efficiency gains in
operations
▪ Malawi with higher volumes across most products
▪ Zambia benefiting from production efficiencies
▪ Botswana with high LPG volumes
▪ Mozambique with good volume growth and improved
cost position
(40.5%) (43.1%)
Sales
+2.0%1)
+12.0%1)
Emerging Africa
Improved profitability at stable revenue with currency headwinds
1) Underlying financials excluding the impact of LPG pass through, currency translation, and exit from DRC

19
AFROX SUMMARY & OUTLOOK

201) Based on AFROX’s policy, dividend is covered by ca. 2x or twice HEPS
2015
69
94
24
2012
47
2013 2014 2016 2017
100
2008
27
2009
4545
38
67
20112010
+20.4%
Afrox Dividend Development [ZAR cents per share]
2008 to 2014 average Dividend payed: 42 cents/share
Proposed dividend1) for 2017 supported by continued solid profits, strong cash flow and lower investment levels
Summary | Value Creation
Dividend history & proposed dividend for 2017
1.99 1.96 2.06 2.04 1.97 2.03 1.51 2.02 2.01 2.01
HEPS
Coverage

21
Summary | Investment Case
Atmospheric
Gases
LPG
Hard Goods Emerging
Africa
Integrated Offer around our applications,
products & services
African brand with strong footprint in
Sub-Saharan Africa
✓ Stable and efficient operating model
enabling our business strategy
✓ Strongest footprint of all gas companies in
Africa especially SADC
✓ Part of global leader in industrial gases –
exposure to technology and best practise
✓ Secured LPG supply chain covering last mile
to the customer
✓ Well adjusted cost base plus ability to recover
cost inflation via combined product offering
✓ Diverse, less cyclical portfolio realising
pockets of growth despite tough economy
✓ Strong balance sheet, cash generative
business and net debt positive
✓ Attractive dividend policy
✓ Geared for growth with low cost- and
consolidated asset-base delivering
economies of scale

22
➢ Strengthen Hard Goods and Industrial Gas business
➢ Recover cost inflation
➢ Improve asset utilisation
➢ Continue growth in bulk Atmospheric Gases and LPG
➢ Maintain current ROCE levels of 20%+
Outlook
Not confident Very confident

23
POSITIONED FOR GROWTH
YEAR-END RESULTS PRESENTATION 2017
THANK YOU

24
Definition of Key Financial Figures
Appendix. I
GPADE
Gross Profit after Distribution Expenses
SG&A
Selling, marketing and general
administration costs
EBITDA
EBIT before non-recurring items adjusted
for amortisation of intangible assets and
depreciation of tangible assets
Return on Capital Employed (ROCE)
EBIT
before non-recurring items
Headline Earnings per Share (HEPS)
before non-recurring items
Profit for the period
before non-trading items
attributable to Afrox shareholders
Earnings per Share (EPS)
Profit for the period
attributable to Afrox shareholders
Average Capital Employed
Equity (incl. non-controlling interests)
+ financial debt
+ liabilities from finance leases
- cash, cash equivalents & securities
- receivables from finance leases
Number of
shares in issue
AFROX reports in four segments,
Atmospheric Gases, Liquid Petroleum
Gases (LPG), Hardgoods and Emerging
Africa
342 852 910 Reporting Segments

25
AGM 17 May 2018
2017 Year-end Results Released 22 February 2018
2017 Year-end Investor and Analyst Presentation 22 February 2018
2018 Interim Investor and Analyst Presentation 10 September 2018
Contact
Phone: +27 11 490 0400
Email: investor.relations@afrox.linde.com
Website: www.afrox.co.za
Investor Calendar 2017

26
APPENDICES

27Annual results presentation for the period ended 31 December 2017
Commentary
PERFORMANCE HIGHLIGHTS
During the year under review, Afrox increased revenue by 2.8% from
improved volumes in the segments Atmospheric Gases and LPG and effective
price cost recovery across all four segments. Adjusting for non-recurring item
(2016 litigation settlement with ArcelorMittal South Africa Limited (AMSA)),
Afrox Group revenue increased by 6% on a comparable basis. The growth
in revenue was achieved despite the continued weakness of the South
African economy.
Earnings before interest, tax, depreciation and amortization (EBITDA) margin
reduced by 160 basis points (bps) to 20.7% (2016: 22.3%) resulting in a
4.4% reduction in reported EBITDA. However, on a comparable basis EBITDA
improved by 9.9%, adjusting for the impact from the non-recurring item in
2016. Despite the reduction in EBITDA, headline earnings per share increased
by 6.1% to 201.0 cents (2016: 189.4 cents), and basic earnings per share
increasing by 5.3% to 203.6 cents (2016: 193.3 cents) with an underlying
growth in headline earnings per share of 32.3% and 30.7% growth in
earnings per share, adjusting for the 2016 litigation settlement.
Effective balance sheet management and cost containment resulted in a
further increase in the cash position to R1 344 million (December 2016:
R1 153 million). Included in net investment activities is capital expenditure
of R350 million (2016: R389 million), and reflects the adequate production
capacity of the Group at present and the expected relatively low
economic growth.
Return on capital employed (ROCE) as reported, reduced by 90 bps to 23.7%
(2016: 24.6%), adjusting for the impact of the 2016 settlement however,
ROCE improved by 370 bps compared to 2016. The adjusted improvement
in ROCE reflects the continued balance sheet optimisation.Financial features
at 31 December 2017
Revenue
R5 693 million
(Increase of 2.8% from R5 537 million at 31 December 2016)
(Increase of 6% after adjusting for non-recurring item)
Earnings per share
203.6 cents
(Increase of 5.3% from 193.3 cents at 31 December 2016)
(Increase of 30.7% after adjusting for non-recurring item)
Headline earnings per share
201 cents
(Increase of 6.1% from 189.4 cents at 31 December 2016)
2017 Dividend
100 cents per share
(Increase of 6.4% from 94 cents at 31 December 2016)

28 African Oxygen Limited
Commentary continued
Revenue for this segment increased by 5.9% after adjusting for the impact
of the litigation settlement received in 2016. This underlying growth was
achieved on the back of better volumes in all sectors in combination with
continued effective price cost management. Volume growth from new
business and the strong interest in Afrox’s innovative industrial gas products,
applications and solutions led to an increase compared to 2016 volumes.
Afrox offers innovative products and solutions within a broad range of
applications for most sectors of sub Saharan industry. New and regained
business within the industrial market demonstrated Afrox’s ability to
successfully compete in its core segment. Within Industrial Gases (acetylene,
oxygen, nitrogen and argon), the demand for our bulk products from new
business and expansion at existing customers, lead to an increase in volume,
despite the impact of a major plant outage during the first half of 2017.
Packaged gases volumes were above prior year levels, with good recoveries
in demand for oxygen from various applications. Afrox successfully
introduced the new cylinder tracking and management system, “Track and
Trace” and the implementation of more effective price cost management,
resulted in an improvement in revenue compared to the comparative period.
Our Bulk Gases volumes increased compared to 2016 and within our
healthcare business, Medical Gases revenue continued to increase from
higher volumes. This reflects Afrox’s strength in the Healthcare market due
to its combined product and service offering and a tailor-made solution for
the increase in demand in the public and private hospital sector, as well as
the growing Homecare market. The investment into our new fully automated
filling plant for Healthcare Gases demonstrates Afrox’s commitment and
leadership in this key area. Hospitality Gases and Special Gases have shown,
good volume growth in most areas. CO2
volumes have increased despite
constrained product availability from our major source.
Gross profit after distribution expenses (GPADE) margins further improved
due to efficiencies in operations and distribution. Improved cost recoveries
across most businesses, coupled with the contribution from the achievement
of higher volumes, resulted in a 130bps improvement in the underlying
margin. The reported GPADE was however 10.5% lower than the prior year
due to the AMSA settlement received in 2016.
BUSINESS REVIEW
Atmospheric Gases
Revenue
R2 283 million
(2016: R2 319 million)
(R2 154 million after
adjusting for non-
recurring item*)
GPADE1
margin:
34.0%
(2016: 37.4%)
(32.8% after adjusting
for non-recurring
item*)
GPADE1
:
R777 million
(2016: R868 million)
(R707 million after
adjusting for non-
recurring item*)
Key highlights
• Good bulk gases performance
• Gained new business
• Continued to provide value-adding services and customer process support
• Consistent infrastructure development and investment
Key challenges
• ASU reliability challenges
• Feedstock availability constraints
• Global helium supply constraint leading to local challenges
• Supply constraints for propellants
1
Gross profit after distribution expenses.
*
The AMSA litigation settlement of R165 million received in 2016.

Robust growth in revenue of 11% compared to 2016 from a 10.4% increase
in volumes despite a decrease in market prices. Margins were however
higher than prior year levels. The continuation of Afrox’s LPG import strategy
has proven to be effective. Afrox managed to grow the LPG business as a
result of a stable supply chain, resulting in continued strong GPADE levels,
with a margin of 21.3% (2016: 20.5%). Adjusted for the change in market
prices, GPADE increased by 18.2% to R425 million. Afrox’s total volumes sold
increased by 10.4%% demonstrating Afrox’s ability to grow the LPG market.
A 35% increase in imported LPG in conjunction with the stable supply from
the local refineries supported Afrox in maintaining its service level to
its industrial customers and justified the current year investment in
120 thousand cylinders for the domestic and hospitality markets that arrived
in South Africa at the beginning of 2017. The strategy to supply the domestic
market from a combination of imports and refinery off-takes has clearly paid
off and Afrox’s could further improve its position in the African LPG market
being one of the most efficient and reliable suppliers
Afrox focuses on efficient supply of LPG for various applications and industry
sectors, which results in a very reliable, environmentally friendly and
cost-effective alternative source of energy. The investments of the past
years impacted on the overall market development and significantly
reduced the supply constraints throughout the regions.
GPADE margin increased by 80bps to 21.3% or 21.8% at comparable
LPG market prices. The final report from the Competition Commission
(the Commission) was issued in March 2017. Afrox continues to cooperate
with, and has introduced the agreed recommendations of the Commission.
Liquefied Petroleum Gas (LPG)
Revenue
R1 994 million
(2016: R1 797 million)
GPADE1
margin:
21.3%
(2016: 20.5%)
GPADE1
:
R425 million
Key highlights
• Security of supply and improved import efficiencies
• Efficient margin management and pricing
• Volume growth through ongoing investment in cylinders and infrastructure
• Improved service levels
Key challenges
• Full implementation of Competition Commission recommendations
• Ongoing action against illegal fillers
• Allocating capital expenditure to priority investments
• Achieving competitively priced imports into the Western Cape
1

Total revenue in this segment decreased by 0.9% to R660 million
(2016: R666 million) as a result of non-repeating business and the
continued subdued demand in the mining and manufacturing industry.
The continuation of various efficiency programs in combination with good
price cost recovery, led to an increase in margins from 34.9% to 36.7%,
an increase of (+180bps) and resulted in a GPADE of R242 million (2016:
R232 million). The retention of key customers, favourable import deals and
various improvements in Afrox’s premium product ranges supported this
positive development. Even though most volumes in welding and gas
equipment products are impacted by the continued slow growth in the
mining, iron and steel and the manufacturing industry, the Hard Goods
segment has seen improved volumes at our welding consumable factory,
the biggest factory of its kind on the African continent. Afrox’s renowned
Self Rescue Pack units for the mining industry sold at similar levels compared
to 2016 benefiting from various long-term service contracts.
Afrox continues its focus on further improving supply, production and
logistics within the segment in order to create additional economies of scale.
With the combination of overseas exports complementing our portfolio,
strong cost containment from procurement and good price cost
management, our Hard Goods business further stabilised despite the
difficult economic environment for this segment and the uncertainty in
the mining sector.
The reported improvement of 190 bps in the GPADE margin to 36.7% is a
result of higher efficiencies and improved price cost recovery. The business
segment experienced steep declines in GPADE and revenue in 2016.
Continued investment in innovation and the introduction of new applications
should ensure continued growth in this sector.
Hard Goods
Revenue
R660 million
GPADE1
margin:
36.7%
(2016: 34.8%)
GPADE1
:
R242 million
Key highlights
• Gained new business with improved support from distributors
• Gas & Gear customer service growth
• Improved product alignment for market needs
Key challenges
• Supply constraints in the first half of the year
• Reduced government investment in independent power producer contracts
• Aggressive competition practices developing in industry
1

Emerging Africa
Revenue
R756 million
GPADE1
margin:
43.1%
(2016: 40.3%)
GPADE1
:
R326 million
Key highlights
• Price cost-recovery
• Maintenance and improvement of profit margins
• New owned Maputo site in Mozambique is fully operational
• Record LPG sales volumes in Malawi
Key challenges
• Persistent macro-economic headwinds
• Commodity price impacts on market demand
• Lower than desired growth in consumer-led markets
1
Excluding adverse effects from weakening currencies in our subsidiaries,
the revenue of our segment Emerging Africa at R756 million remained consistent
with 2016 levels (2016: R755 million) or 3% growth without currency effects.
Emerging Africa economies are experiencing the first signs of an improvement,
due to a modest recovery in commodity prices.
GPADE increased by 6.5% to R326 million (2016: R306 million), or 12%
excluding the currency effect, with an increase in the reported margin of
200bps compared to 2016. This robust performance was achieved mainly
as a result of good LPG volumes, strong discipline in price cost recovery and
the initial implementation of our group wide SWIFT program, allowing the
business to benefit from proven cost reduction and operational efficiency
measures.
Emerging Africa continues to invest in its combined product offering of
Industrial Gases, Hard Goods and the reliable supply from its established
position in the LPG market.

The local net dividend amount is 43.2 cents (2016: 44.8 cents) per share for
shareholders liable to pay Dividends Tax and 54.0 cents (2016: 56.0 cents)
per share for shareholders exempt from Dividends Tax.
In terms of the Dividends Tax, the following additional information
is disclosed:
– The dividend has been declared out of income reserves.
– The local Dividends Tax rate is 20%, subject to double tax agreement.
– Afrox currently has 308 567 602 ordinary shares (excluding treasury shares
of 34 285 308) in issue.
– Afrox’s income tax reference number is 9350042710.
By order of the Board
Cheryl Singh 22 February 2018
Company Secretary Johannesburg
Forward-looking statements disclaimer: This results review contains
statements related to our future business and financial performance and
future events or developments involving Afrox that may constitute forward-
looking statements. Such statements are based on current expectations and
certain assumptions of Afrox’s management are therefore subject to certain
risks and uncertainties. A variety of factors, many of which are beyond
Afrox’s control, affect our operations, performance, business strategy and
results and could cause the actual results, performance or achievements of
Afrox to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking
statements or anticipated on the basis of historical trends. Forward-looking
statements are the responsibility of the Board of directors of Afrox.
DIVIDEND
It is the Company’s policy to consider dividends bi-annually. The Board
of directors has declared a final cash dividend of 54.0 cents per share
(2016: 56.0 cents), declared out of the after-tax profits for the year ended
31 December 2017. The total dividend for the year amounts to 100 cents
(2016: 94 cents), based on Afrox’s policy, of the dividend being covered two
times by headline earnings per share.
OUTLOOK
Afrox believes in its products, people and its strong value contribution to its
customers. Despite the expected continued low economic growth in 2018
Afrox will continue to seek specific growth opportunities, maintain its control
over cost increases and continue its productivity improvement initiatives.
Bernd Eulitz Schalk Venter
Chairman Managing Director
Matthias Vogt 22 February 2018
Group Financial Director Johannesburg
NOTICE OF FINAL DIVIDEND DECLARATION NUMBER 182
AND SALIENT FEATURES
Notice is hereby given that a gross cash dividend of 54.0 cents per ordinary
share, being the final dividend for the year ended 31 December 2017, has
been declared payable to all shareholders of Afrox recorded in the register
on Friday, 6 April 2018.
The salient dates for the declaration and payment of the final dividend are
as follows:
Last day to trade ordinary shares “cum” dividend Tuesday, 3 April 2018
Ordinary shares trade “ex” the dividend Wednesday, 4 April 2018
Record date Friday, 6 April 2018
Payment date Monday, 9 April 2018
Shares may not be dematerialised or rematerialised between Wednesday,
4 April 2018 and Friday, 6 April 2018, both days inclusive.

R’million
31 December
2017
Audited
31 December
2016
Audited
Revenue 5 693 5 537
Operating expenses (4 510) (4 300)
Earnings before interest, taxation, depreciation, amortisation and impairments (EBITDA) 1 183 1 237
Depreciation and amortisation (328) (379)
Impairment of tangible assets – (10)
Earnings before interest and taxation (EBIT) 855 848
Finance expense (108) (112)
Finance income 133 126
Income from associate net of tax – 2
Profit before taxation 880 864
Taxation (242) (264)
Profit for the year 638 600
Attributable to:
Owners of the company 628 597
Non-controlling interests 10 3
Earnings per share – cents
Basic earnings per share – cents 203,6 193,3
Diluted earnings per share – cents 201,8 192,9
Summarised consolidated income statement
SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2017

Summarised consolidated statement of comprehensive income
R’million
31 December
2017
Audited
31 December
2016
Audited
Other comprehensive income/ (loss) 45 (106)
Items that are or may be reclassified to profit or loss 9 (51)
Translation differences on foreign operations 9 (43)
Translation differences relating to non-controlling interests (1) (4)
Cash flow hedges – effective portion of changes in fair value (net of tax) 1 (4)
Items that will not be reclassified to profit or loss 36 (55)
Remeasurement of retirement benefits (net of tax) 36 (55)
Total comprehensive income for the year 683 494
Total comprehensive income attributable to:
Owners of the Company 674 495
Non-controlling interests 9 (1)
683 494

Summarised consolidated statement of financial position
at 31 December 2017
R’million Note
31 December
2017
Audited
31 December
2016
Audited
ASSETS
Property, plant and equipment 3 2 964 2 952
Retirement benefits assets 484 406
Lease receivables 66 72
Other non-current assets 39 52
Deferred taxation assets 13 15
Non-current assets 3 566 3 497
Inventories 710 611
Trade and other receivables 1 094 1 044
Lease receivables 12 16
Receivables from fellow subsidiaries of holding company 130 66
Taxation receivable 57 38
Cash and cash equivalents 1 387 1 175
Current assets 3 390 2 950
Total assets 6 956 6 447
EQUITY AND LIABILITIES
Shareholders’ equity 4 001 3 657
Non-controlling interests 33 27
Total equity 4 034 3 684
Long-term borrowings 1 000 1 000
Other long-term financial liability 20 26
Deferred taxation liability 591 553
Non-current liabilities 1 611 1 579
Trade, other payables and provisions 1 126 1 065
Taxation payable 26 26
Payables to fellow subsidiaries of holding company 96 60
Derivative financial instruments 20 11
Bank overdrafts 43 22
Current liabilities 1 311 1 184
Total equity and liabilities 6 956 6 447

Summarised consolidated statement of cash flows
R’million Note
31 December
2017
Audited
31 December
2016
Audited
Adjustments for:
Depreciation, amortisation and impairments 328 389
Movements in trade receivables and inventory impairment allowances and provisions (58) (40)
Other non cash movements (26) (27)
Operating cash flows before working capital adjustments 1 099 1 170
Working capital adjustments (102) (11)
Cash generated from operations before restructuring costs 997 1 159
Restructuring costs paid – (60)
Cash generated from operations 997 1 099
Interest paid (105) (104)
Interest received 74 38
Taxation paid (235) (177)
Dividends received 1 1
Cash available from operating activities 732 857
Dividends paid to owners of the parent (315) (275)
Dividends to non-controlling interests (3) (9)
Net cash inflow from operating activities 414 573
Additions to property, plant and equipment (350) (379)
Intangible assets acquired – (10)
Proceeds from disposal of property, plant and equipment 106 84
Other investing activities 28 33
Net cash outflow from investing activities (216) (272)
Long term borrowings raised 600 –
Long term borrowings repaid (600) –
Incentive share scheme shares purchased on behalf of employees (7) –
Net cash outflow from financing activities (7) –
Net increase in cash and cash equivalents 191 301
Cash and cash equivalents at the beginning of the year 1 153 852
Cash and cash equivalents at the end of the year 1 344 1 153

Summarised consolidated statement of changes in equity
Attributable to owners of the Company
R’million
Share
capital
Incentive
scheme
shares and
share based
payment
reserves
FCTR* and
hedging
reserves
Remeasurement
of retirement
benefits
Retained
earnings
Non-
controlling
interests
Total
equity
Balance at 1 January 2016 552 – (50) 317 2 612 37 3 468
Total comprehensive income – – (47) (55) 597 (1) 494
Profit for the year – – – – 597 3 600
Other comprehensive income, net of taxation – – (47) (55) – (4) (106)
Share based payments, net of tax – 6 – – – – 6
Forfeited shares – (11) – – 11 – –
Dividends – – – – (275) (9) (284)
Transfer to retained earnings – 5 – (262) 257 – –
Balance at 31 December 2016 552 – (97) – 3 202 27 3 684
Total comprehensive income – – 10 – 664 9 683
Profit for the year – – – – 628 10 638
Other comprehensive income, net of tax – – 10 – 36 (1) 45
Transactions with owners
Shares purchased on behalf of employees – – – – (7) – (7)
Share based payments, net of tax – – – – (8) – (8)
Transfer to retained earnings – – – – – –
Dividends – – – – (315) (3) (318)
Balance at 31 December 2017 552 – (87) – 3 536 33 4 034
* Foreign currency translation reserve.

Segmental report
R’million
31 December
2017
Audited
31 December
2016
Audited
Revenue* 5 693 5 537
Atmospheric gases 2 283 2 319
LPG 1 994 1 797
Hard goods 660 666
Emerging Africa 756 755
Gross profit after distribution expenses (GPADE) 1 770 1 775
Atmospheric gases 777 868
LPG 425 369
Hard goods 242 232
Emerging Africa 326 306
Reconciliation of GPADE to EBIT
GPADE for business segments 1 770 1 775
Other operating expenses (915) (917)
Impairments – (10)
Geographical representation
Revenue 5 693 5 537
South Africa 4 937 4 782
Emerging Africa^
756 755
Non-current assets 3 566 3 497
South Africa 3 311 3 242
Emerging Africa^
255 255
* Revenue from external customers.
^
The revenue and non-current assets foreign country geographical split has been aggregated as Emerging Africa.
The individual amounts are considered to be immaterial.
Business segments are identified on the basis of internal reports that are regularly reviewed by the Group’s and Company’s chief operating decision making body,
the Executive Directors, in order to allocate resources to the segment and assess its performance. The performance of the segments is managed and evaluated
using revenue and gross profit after distribution expenses only. Assets and liabilities are centrally managed at a corporate level and therefore not used in the
decision to allocate resources to operating segments. Segments have been determined based on business segments: Atmospheric Gases, LPG, Hard Goods and
Emerging Africa.

Statistics and ratios
31 December
2017
Audited
31 December
2016
Audited
Average number of shares in issue during the period (‘000) 308 568 308 568
Shares in issue (‘000) 308 568 308 568
Dividends per share (cents) 100,0 94,0
Final 54,0 56,0
Interim 46,0 38,0
Ratios
EBITDA margin (%) 20,8 22,3
Return on capital employed 23,7 24,6
Effective taxation rate (%) 27,5 30,5
Gearing (%) (10) (4,4)
Dividend cover on headline earnings (times) 2,0 2,0

African Oxygen Limited (“Afrox” or the “Company”) is a South African registered company. The summarised consolidated financial statements of the Company comprise the
Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in an associate and a trading trust.
1 BASIS OF PREPARATION
The summarised consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for summary reports,
and the requirements of the Companies Act of South Africa applicable to summary financial statements. The listing requirements require a summary to be prepared
in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and
to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the consolidated
financial statements, from which the summary consolidated financial statements were derived, are in terms of IFRS and are consistent with the accounting policies
applied in the preparation of the previous consolidated annual financial statements.
The accounting policies applied in the presentation of the summarised consolidated financial statements are consistent with those applied for the year ended
31 December 2016. The summarised consolidated financial statements are presented in Rands which is the functional and presentation currency.
The summarised consolidated financial statements are prepared on the historical cost basis except for the following items which are measured using an alternative
basis at each reporting date:
– Derivative financial instruments measured at fair value through profit or loss;
– Retirement benefit assets and liabilities are measured at the fair value of the planned assets less the present value of the defined benefit obligation; and
– Share based payment awards are measured at fair value. The fair value of the equity instruments granted is estimated using industry accepted techniques.
The directors take full responsibility for the preparation of these summarised consolidated financial statements and that the financial information has been correctly
extracted from the full audited consolidated financial statements.
This report was compiled under the supervision of Matthias Vogt, Group Financial Director.
2 NEW STANDARDS AND AMENDMENTS
The Group has adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial
application of 1 January 2017:
– Disclosure Initiative (Amendments to IAS 7); and
– Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12).
The adoption of the amendments to standards listed above did not have a significant impact on the consolidated financial statements.
Notes to the summarised consolidated financial statements

3 PROPERTY, PLANT AND EQUIPMENT
R’million
31 December
2017
Audited
31 December
2016
Audited
Opening carrying value 2 952 2 988
Additions, net of transfers from assets under construction 350 379
Transfer to assets held-for-sale – (7)
Impairments – (10)
Disposals (8) (15)
Depreciation (316) (367)
Translation differences (14) (16)
Closing carrying value 2 964 2 952
4 FAIR VALUE CLASSIFICATION AND MEASUREMENT
Accounting classification and fair value
The classification of each class of financial assets and liabilities, and their fair values are:
R’million Fair Value
31 December 2017
Financial liability measured at fair value
Derivative financial instruments 20
31 December 2016
Financial liability measured at fair value
Derivative financial instruments 11
The derivatives are a level 2 measurement and the fair value of the derivative financial instruments is based on broker quotes. Similar contracts are traded in an active
market and the quote reflect the actual transactions in similar instruments. The carrying value of all other financial instruments closely approximates their fair value
due to their short term nature.
Notes to the summarised consolidated interim financial statements continued

5 BASIC, DILUTED AND HEADLINE EARNINGS PER SHARE
Headline earnings and dilutive earnings per share are calculated on headline earnings of R620 million (2016: R585 million). A weighted average number of ordinary
shares of 308 567 602 (2016: 308 567 602) in issue during the year was used to calculate headline earnings per share and 311 275 880 (2016: 311 120 193) for dilutive
earnings per share as 2 708 278 (2016: 2 552 591) shares had a dilutive impact.
R’million
31 December
2017
Audited
31 December
2016
Audited
Profit for the period 628 597
Adjusted for the effects of:
Profit on disposal of property, plant and equipment (11) (26)
Impairment of property, plant and equipment – 10
617 581
Taxation 3 4
Headline earnings 620 585
Basic earnings per share – cents 203,6 193,3
Diluted earnings per share – cents 201,8 192,9
Headline earnings per share – cents 201,0 189,4
Diluted headline earning per share – cents 199,2 189,0

6 RELATED PARTY TRANSACTIONS
During the year, Afrox, in the ordinary course of business, entered into various sale, purchase and service transactions with associate, receivables from fellow
subsidiaries of holding company, receivables from group companies, payables to fellow subsidiaries of holding company and payables to group companies.
These transactions were subject to terms that are no less favourable than those offered by third parties.
7 UPDATE ON KEY LITIGATION MATTERS
Afrox is presently a respondent in an investigation by the Competition Commission of South Africa with respect to the LPG sector. Afrox is cooperating fully with
the Commission’s investigation. As at the date of this report, there is no other outstanding litigation of a material nature against the Group.
8 SUBSEQUENT EVENTS
The directors are not aware of any material matter or circumstance arising between 31 December 2017 and the date of this report on which comment is required.
9 SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS
This summarised consolidated financial statements are extracted from audited consolidated financial statements, but is not itself audited. The consolidated
financial statements were audited by KPMG Inc., who expressed an unmodified opinion thereon. The audited consolidated annual financial statements and the auditor’s
report thereon are available for inspection at the company’s registered office. The directors take full responsibility for the preparation of these summarised consolidated
financial statements and that the financial information has been correctly extracted from the underlying annual financial statements.

Corporate information
(Incorporated in the Republic of South Africa)
Registration number: 1927/000089/06
ISIN: ZAE000067120 JSE code: AFX
NSX code: AOX
Transfer secretaries: Computershare Investor Services (Pty) Limited
Sponsor in South Africa: One Capital
Sponsor in Namibia: Namibia Equity Brokers (Pty) Limited
Directors: S Venter (Managing Director), M Vogt* (Group Financial Director), B Eulitz* (Chairman), M von Plotho*, Dr KDK Mokhele, CF Wells**, NVL Qangule,
GJ Strauss, VN Fakude
* German ** British
Company Secretary: C Singh
Auditors: KPMG Inc.
Registered office
Afrox House, 23 Webber Street, Selby
Johannesburg 2001
PO Box 5404, Johannesburg 2000
Telephone +27 (11) 490 0400

Afrox Annual Results Presentation 2017

Afrox Annual Results Presentation 2017

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