Audited results and withdrawal of cautionary announcement for the year ended 31 December 2013

("Hulamin" or "the group")
Registration number: 1940/013924/06
Share code: HLM
ISIN: ZAE000096210

Audited Results and withdrawal of cautionary announcement
for the year ended 31 December 2013

Click here to see the results announcement booklet

- Normalised earnings up 251% to R201 million
- HEPS increased by 128% to 57 cents per share
- Positive cash flow before financing activities of R135 million
- Non-cash once-off net impairment charge of R1,53 billion
- Growing local sales contribution
- Improved performance from Hulamin Extrusions

Hulamin 033 395 6911
Richard Jacob, CEO 082 806 4068
David Austin, CFO 082 718 6151
Hector Molale 083 639 1021
Johannes van Niekerk 082 921 9110

We have made further progress in the year under review to position Hulamin appropriately
for growth and improved profitability.

Continuing cost savings with a 10% reduction in employee numbers and efficiency gains from
our manufacturing excellence program and other initiatives netted R96 million in 2013 and
over R200 million since inception in 2010.

The restructuring of the Rolled Products operations to achieve international best practice
benchmarks is underway, having delivered lower annualised production of 192 000 tons in

In September we successfully concluded the replacement of our debt facilities to match our
working capital cycle.

While certain operations, notably slab production, improved operating performance, and the
hot rolling line maintained its high performance levels, cold rolling and the production of can
end stock required ongoing supervision. These factors, combined with a first half unfavourable
mix and planned replacement maintenance to the Camps Drift Hot Mill, contributed to Rolled
Products sales being weaker in 2013 than in 2011 and 2012 and are being addressed in the
restructuring referred to earlier.

The impact of declining cost competitiveness and margin pressure, exacerbated by rampant
input cost increases, supply disruptions, imported rolled and extruded products in the local
market without tariff protection and general weak local demand, prompted the revalidation
of growth assumptions and a resultant revaluation of plant and equipment in terms of IAS 36,
translating to the R1,5 billion after tax, once-off non-cash impairment charge.

We remain committed to realising maximum profitability as we optimise the use of installed
capacity while unlocking promising regional growth opportunities. The spearhead of this
program is the measured introduction of all-aluminium beverage cans, and the metal
sourcing and recycling benefits it delivers, without sacrificing high value export opportunities.
By implementing new product scheduling technology, with the lighter gauge can body-driven
stock mix at its centre, we expect Hulamin Rolled Products to achieve optimal profit realisation
at a lower nominal output level of 220 000 tons annually at full capacity.

Turnover for the year under review increased to R7,56 billion (2012: R6,54 billion), supported
by an improved performance from Hulamin Extrusions and the depreciation of the Rand by
17,5% on average to the US Dollar.

Underlying operating profit before metal price lag and impairments increased by 101% to
R375 million (2012 restated: R187 million), the highest since 2008. The weakening currency
in 2013 is estimated to have contributed approximately R240 million to this number. The LME
aluminium price continued to weaken during the year, leading to a R58 million metal price
lag loss.

Net interest remained constant at R63 million and, after recognising the impairment charge,
earnings declined to a loss of R1,34 billion, from a restated R29 million profit in the prior year.
Headline earnings increased by 132% to R183 million (2012 restated: R79 million) or 57 cents
per share (2012 restated: 25 cents per share).

Normalised earnings, disregarding the impairment charge and once off costs related to the
reduction in employee complement, increased to R201 million (2012 restated: R57 million) or
63 cents per share (2012 restated: 18 cents per share).

Borrowings decreased to R612 million (2012: R742 million), reflecting a positive cash flow
before financing activities of R135 million.

Market environment
Demand in Western Europe and United States gradually improved through the year. Chinese
exports of can end stock, plate and foil continued to grow due to a major expansion of rolling
capacity in China in recent years which exceeded the growth in their domestic demand. The
growing competition from Chinese exports negatively impacted international rolling margins.

Domestic demand for rolled products showed moderate improvement, led by growth in the
beverage can market and a return to normal demand patterns in the automotive industry,
in spite of being impacted negatively by the three-week strike in August 2013. Demand for
extruded products benefited from infrastructure projects, particularly the construction of
solar electrical generation plants.

All-aluminium beverage cans in Southern Africa
In November 2012 Hulamin concluded a commitment with Nampak for the supply of
28 000 tons of aluminium can body stock from 2013 to 2015. Hulamin successfully commenced
qualification of its can body stock products in the fourth quarter of 2013.

Used beverage cans
The conversion of the local and regional beverage can market to the all-aluminium can has
created an opportunity for a major step forward in the recycling of packaging materials in
South Africa. The recycling of used beverage cans will contribute to job and wealth creation in
scrap collection and distribution, and will have environmental benefits from reduced littering
and an improved national carbon footprint.

Aluminium used beverage cans are particularly well suited to recycling into new can body
stock. To this end, Hulamin is investing R300 million in additional scrap separation, processing
and recycling equipment, with a planned start up in mid-2015. This investment will allow
Hulamin to secure competitively priced aluminium inputs and increase its slab production
capacity in Pietermaritzburg.

Supply of aluminium from Richards Bay
Hulamin sources melting ingot from BHP Billiton's Hillside smelter in Richards Bay.
This metal is combined with process scrap to produce rolling slab and extrusion billet in
Pietermaritzburg. Approximately two thirds of Hulamin's rolling slab and one third of its
extrusion billet requirement are produced in this way. The balance of Hulamin's rolling
slab requirement is sourced from the casthouse at BHP Billiton's Bayside smelter, also in
Richards Bay, and the majority of extrusion billet is imported.

Withdrawal of cautionary announcement
Shareholders are referred to the cautionary announcement issued by Hulamin on 16 January
2014, wherein it was advised that BHP Billiton had commenced an engagement process
with its employees over the restructuring of its Bayside operations and that Hulamin had
therefore entered into negotiations with BHP Billiton SA Holdings ("BHP Billiton") over the
future of rolling slab supply from the Bayside casthouse.

Shareholders are now advised that BHP Billiton has committed to the continued supply of
rolling slab to Hulamin to 31 December 2014 and in this regard, caution is no longer required
to be exercised by shareholders when dealing in the company's securities.

Hulamin and BHP Billiton have been in discussions for several years over the longer term
availability of rolling slab and other value added smelter products from Bayside. These
discussions are ongoing and shareholders will be advised as further developments take

The board has not declared a dividend for 2013.

The continuing application of efficiency and improvement programmes are expected to benefit
manufacturing performance and profitability in 2014 as we progress towards full capacity

Local sales volumes are expected to grow in 2014 and beyond, as can production is switched
to the all-aluminium can, to be completed by 2018 to 2020.

Given Hulamin's current export position, financial performance will continue to be influenced
by the value of the Rand in exchange with foreign currencies.

ME Mkwanazi RG Jacob
Chairman CEO


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