HULAMIN LIMITED - Unaudited Condensed Consolidated Interim Results for the six months ended 30 June 2020

Unaudited Condensed Consolidated Interim Results for the six months ended 30 June 2020

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

UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
30 JUNE 2020

Results Headlines

•     Group sales volume decreased by 35% to 71 000 tons
•     Revenue decreased by 30% to R3.7 billion
•     Loss per share increased by 26 cents to 75 cents per share
•     Negative free cash flow of R302 million
•     Balance sheet resilient, with net debt to equity of 27%
•     Turnaround actions delivering cost reductions, working capital controls; volume actions contained
      due to COVID-19

Results Overview

“Significant cost reduction efforts coupled with stringent controls over working capital helped reduce the
impact of COVID-19 on Hulamin during the first six months of 2020. As experienced by most companies
globally, the emergence of the coronavirus pandemic resulted in major disruptions to demand as well
as our manufacturing operations. Consequently, the first half of 2020 was a particular challenging
trading period.

Hulamin Extrusions’ turnaround continued. Although volumes were negatively impacted by the COVID-
19 lockdown, green shoots of a successful turnaround are becoming evident. The business suffered a
first-half loss, which includes costs related to the closure of the Olifantsfontein plant that have carried
over into 2020. With the rightsizing of the business to one with a lower unit cost base, consolidated in
Pietermaritzburg, largely complete, we are looking forward to a return to profitability in the second half
of 2020.”

Richard Jacob, Hulamin Chief Executive Officer


Financial Headlines
The unaudited results for the six months ended 30 June 2020 (“current period” or “H1 2020”), as
compared to the unaudited results for the six months ended 30 June 2019 (“comparative period” or “H1
2019”), are set out below:

                                                               H1 2020                       H1 2019
                                                                                             Restated
                                                     R’000            Percentage              R’000
                                                                       change
    Revenue                                        3 673 509           (30.0)%               5 247 087

    Operating loss                                 (119 446)             (28,6)%             (167 176)

    Basic loss per share (cents)                      (75)               53,1%                  (49)

    Basic headline loss per share (cents)             (70)               52.2%                  (46)
 Basic normalised headline (loss) /                  (76)             >(100)%                  4
 earnings per share (cents) (note 1)


No dividend was declared in respect of the H1 2020 period or the comparative period.

Note 1: Normalised headline earnings
The presentation of normalised headline earnings is not an IFRS requirement and this measure may
not be directly comparable with the same or similar measures disclosed by other companies. The
directors are responsible for preparing and ensuring Alternative Performance Measures comply with
Practice Note 4/2019 (Performance Measures) of the JSE Listings Requirements.
These measures are used by the Hulamin Executive Committee in assessing financial performance
and are calculated in a consistent manner as per the latest annual financial statements, by 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 profits and earnings attributable to the ongoing
activities of the Group.

This short form announcement is the responsibility of the Board and does not contain full or complete
details.

This announcement is only a summary of the full announcement released on SENS on 21 September
2020(“Full Announcement”) and does not contain full or complete details. Any investment decisions
by investors and/or shareholders should be based as a whole on consideration of the Full
Announcement which may be downloaded from
https://senspdf.jse.co.za/documents/2020/jse/isse/HLM/June20Int.pdf
or from the Company’s website (www.hulamin.co.za) or may be viewed, at no cost, at the registered
office of the Company during ordinary business hours, for a period of 30 calendar days following the
date of this announcement.
The Full Announcement may also be requested by emailing the Company Secretary at
willem.fitchat@hulamin.co.za

Registered office: Moses Mabhida Road, Pietermaritzburg; Telephone: 033 395 6911

Pietermaritzburg
21 September 2020

Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 21-09-2020 09:17:00
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