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The recovery

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> Performance Summary > Performance Drivers ° External ° Internal > Afrox Results Analysed > Turnaround Update > Project Update & Outlook > Additional Content

Presentation Outline

Performance Summary

Business Highlights H1 2015

Top 10 topics

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Safety performance impacted by vehicle incidents and accidents Volumes generally more resilient than the market Improved operating cash flow from focus on inventory and ROCE improvement Strong EBITDA growth reflects early benefits from restructuring initiatives Good LPG performance and margins recovering in a falling cost environment Shortage of LPG negatively affecting revenue development potential Healthcare volume growth supported by state tender All provisions required for restructuring taken Interim dividend aligns with HEPS as dividend policy New Executive team established under new Chairman, MD and CFO

1 2 3 4 5 6 7 8 9 10

SHEQ Performance

Significant MIR reduction since 2009

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An MIR is an incident with a major outcome and consequences which:

> Represents a significant non-compliance with Afrox's Safety, Security, Health, Environment and Quality (SHEQ) policy > Highlights the presence of a serious and unacceptable level of risk > Creates a significant threat to Afrox's reputation > Represents a serious risk of litigation and regulatory action

31 25 28 22 8 6 5 5 10 15 20 25 30 35 2009 2010 2011 2012 2013 2014 2015

MIRs Afrox

H1 2015

Comments MIR Trend

Performance Drivers

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External Performance Drivers

SA manufacturing and mining sector growth subdued

> Commodity prices under pressure > Uncertain labour climate > Infrastructure projects at slower pace in sub-Saharan Africa > SA GDP growth forecasts revised downward > Electricity shortages hampering production and investments > Pockets of growth in certain sectors

Afrox Performance Drivers: Strategic Delivery

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South Africa > Focus on costs and >15% FTE reduction > Drive efficiency improvements > Refined go-to-market approach > Resolve LPG security of supply > Improve flexibility of Hard Goods supply chain Rest of Africa > Focus on growth areas and products > Identify investment opportunities > Further strengthen corporate governance > Reduce supply chain cost > Ensure critical mass in each country

The leading sub-Saharan Africa gases and welding products company with operations in 15 countries

2015-2016 Focus

Afrox Results Analysed

Performance H1 2015

Highlights

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> Revenue development negatively impacted by LPG pass through > Strong EBITDA growth reflecting early benefits from restructuring initiatives > Positive EBITDA margin development from restructuring and also lower LPG pass through effects > Non -recurring costs reflect current restructuring and impairment charges > Improved operating cash flow development with focus on inventory and ROCE improvement ZAR m H1 2014 H1 2015 yoy [%]

Revenue 2,866 2,679

• 6.5%*

EBITDA 442 486 +10.0% EBITDA Margin 15.4% 18.1% +17.5% Non-recurring items 137

• Operating Cash flow

376 396 +5.3% EPS before non recurring items 52.8 66.9 +26.7% Headline EPS 49.5 37.4

• 24.4%

Reported EPS 52.8 35.0

• 33.7%

ROCE 12.8% 16.6% +29.2%

* Excl. market price change of LPG, total revenue unfavorable by -0.2%

Business Performance

Despite overall lower revenues, increase in GPADE

36.4% 39.8% 14.6% 19.6% 30.6% 28.1% 33.8% 34.3%

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Reported growth Comparable growth: excluding LPG pass through effect

946 H1 2014 H1 2015 899 H1 2015 376 H1 2014 327

36.4% 39.8%

GPADE* % Margin Revenue

Atmospheric Gases H1 2015 871 H1 2014 1,045

+0.8%

H1 2015 171 H1 2014 153

14.6% 19.6%

LPG H1 2014 425 457 H1 2015 H1 2015 119 H1 2014 140

30.6% 28.1%

Hard Goods 465 H1 2015 437 H1 2014 150 H1 2015 157 H1 2014

33.8% 34.3%

Rest of Africa

• 4%
• 15%

+12% +15% +5%

• 17%
• 7%
• 6%

ZAR m

* GPADE is gross profit after distribution expenses

Financials ZAR m 2014 2015 Var % Sales 899 946 +5% GPADE 327 376 +15% % Margin 36.4 39.8 +340bp

> Increase OPM from restructure > New CO2 sources > Increase asset utilisation and reliability > Go-to-market strategy > Growth in new applications > Volumes resilient relative to market > Pricing in line with factor cost increase > First cost reductions from restructure > Profit and Margin improvement

Strategic Topics

366 336 134 157 128 134 115 128 113 146 12 30 Petrochemical Steel & Mining Healthcare Food & Beverages Automotive + Other Construction Paper 32

946 899

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> Diversified, meaning well positioned against cyclical downturns of mining and steel sectors > CO2 business offers good exposure to growing food and beverage sectors > South Africa steel sector output reduced 12.7% May 2015 vs. PY > Strong Healthcare growth reflects macro trend

Sales by Market Segment

Atmospheric Gases

Diversification supports revenue growth

+4% +7% +29% +12% +5%

• 8%

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+17%

H1 2014 H1 2015

LPG

Good margin management and volume growth

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South African Volumes (KT) Development Jan 13 – Jun 15 Bulk Cylinder South Africa Margin per ton Development Jan 13 – Jun 15 > Leading margin management > Supply of security > Return on investment in cylinders > Go-to-market model relative to Industrial Gases > Revenue negatively impacted by pass through > Cold winter supports volumes > Strong focus on margin management > Product availability remains crucial > Strong distribution network Strategic Topics Financials ZAR m 2014 2015 Var % Sales 1045 871

• 17%

GPADE 153 171 +12% % Margin 14.6 19.6 +500bp

Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13 Q1-13 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13 Q1-13 Cost per ton Revenue per ton

Financials > % GPADE reduction as costs not flexing down > Market decline leading to increased price pressure Volumes > Mining industry currently in weak position > Gas Equipment exports to Australia down linked to mining > Currently slow major infrastructure projects in South Africa > SRD strong business in 2014 not expected to repeat in 2015 Go Forward > Hard Goods continue to provide integrated offer with gases

Hard Goods

Provide good synergies for gases business

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Comments

> Reduce inventory > Rationalise number of SKUs > Options to right-size fixed costs to throughput

Strategic Topics Financials ZAR m 2014 2015 Var % Sales 457 425

• 7%

GPADE 140 119

• 15%

% Margin 30.6 28.1

• 250bp

Strategic Topics

Impact on Reported Numbers > Lower LPG market prices impact sales > Angola exit R7m/R5m Sales/ GPADE impact > R9m GPADE impact from LPG shortage into Lesotho & Swaziland > Zambia currency headwind Underlying > Growing CO2 business > Improvements in supply chain position > Good LPG margin management > Underlying1 GPADE growth of 4%

Financials ZAR m 2014 2015 Var % Sales 465 437

• 6%

GPADE 157 150

• 5%

% Margin 33.8 34.3 +50bp Comments

• 1. Underlying GPADE adjusted for R5m portfolio change impact and R9m LPG shortage into Swaziland & Lesotho

Rest of Africa

Performance impacted by portfolio change and LPG shortages

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> Reduce supply chain costs and increase customer supply security > Infrastructure in place for growth > Ensure critical mass in each country & appropriate governance in place

SG&A H1 2014 versus H1 2015 Restructure

530 520 H1 2014 H1 2015

> Benchmarking highlighted opportunities to restructure to reduce headcount > FTE reductions already evident and consultation process underway > Consolidation of head-offices implemented > New procurement polices in place > Outsourced transactional processes to shared service centre

Selling, General & Admin Expenses (SG&A)

Early effects of turnaround already evident

• 2%

ZAR m

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Financial Performance: Key Indicators

Financial position improving from solid base

> Strong free cash flow through business performance and capital efficiency > Net debt falling relative to EBITDA > Going forward expect debt to increase due to restructuring charges, then drop as benefits delivered > Strong balance sheet with undrawn facilities > ROCE strong improvement due to restructure focused on performance and asset utilisation >

Cash Flow Financial KPIs

ZAR m H1 2014 H1 2015 ∆ in % Operating cash flow 376 396 +5.3% Investments (201) (125)

• 38%

Free cash flow 175 271 +55% Change in cash and (financial debt) (31) 149 +180 14.8 15.6 15.1 12.8 16.6 LTM 30/06/2015 2014 2013 2012 2011

Net debt/ EBITDA ROCE

0.8 0.9 0.6 0.8 0.4

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Turnaround Update

Turnaround Update

Get Healthy > Introduce leaner organisation > Right-size operations > Better utilise assets > Outsource non-core operations > More effective procurement processes > Best commercial practice (BCP) pricing composition > New customer centric go-to-market model > Increase effectiveness & efficiency of traditional channels > Introduction of e-Shop & EDI > Portfolio management > BCP price cost recovery > Grow Rest of Africa > Grow LPG > Grow Healthcare > Grow Special Gases

Turnaround Plan

Enhance channels and business portfolio

Get Strong Get Business

1 2 3

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Restructuring Costs and Benefits

Turnaround not easy but offers great returns

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Restructuring Costs & Savings

237 125 Savings Costs 138 275 375

2016 2015 2014

2015

> Costs posted are final for ‘Get Healthy’ phase of turnaround > Increase from 2014 reflective of projects now being fully defined > 11 month payback on cost

R375m costs incurred

> Impairments of plant, equipment, inventory and goodwill > Restructuring costs covering ° Redundancy ° Outsourcing ° Closure of operations ° SKU reduction ° Consultant support > Benefits realised with headcount falling since Jul-15 > All initiatives implemented by year-end 2015 > Full impact expected by year-end 2016

400

Cost Benefits

ZAR m

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Project Update & Outlook

Key Project Update

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• 1. Port Elizabeth ASU

> Successfully commissioned in April 2015, continuous production since June 2015 > Project delivered on time and on budget > New technologies include automatic tanker loading, filling, product analysis and certification (SALSA)

• 3. Sale of Cornubia land: 103 000m2

> Portion 79 was sold for R30m > Disposal of remaining 4 portions progressing

• 2. New Durban Filling Plant, Riverhorse valley

> The civil and structural details finalised > Project within budget, completion Q1 2016

Outlook

> Difficult economic conditions expected to remain in medium term > Completion of SWIFT cost reduction and efficiency initiative > New go-to-market model roll out completed by end 2015 > Focus on working capital management > Selected investments in Rest of Africa > Focus on growth areas: ° Special Gases ° CO2 ° Healthcare ° Rest of Africa > Target ROCE of 20% + in medium term

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Thank you

Statutory Income Statement (IAS34)

June 2015

2015 2014 2014 6 Months 6 Months R'million Reviewed Reviewed Audited Revenue 2 679 2 866 5 834 Operating expenses (2 193) (2 424) (5 016) Earnings before interest, taxation, depreciation, amortisation and impairments (EBITDA) 486 442 818 Depreciation and amortisation ( 190) ( 195) ( 381) Impairment of tangible assets ( 11)

• ( 35)

Impairment of intangible assets

• ( 17)

Earnings before interest and taxation (EBIT) before restructuring costs 285 247 385 Restructuring costs ( 126)

• ( 185)

Earnings before interest and taxation (EBIT) 159 247 200 Net finance expense

• ( 5)

( 12) Income from associate

• 1

1 Profit before taxation 159 243 189 Taxation ( 44) ( 74) ( 93) Profit for the year 115 169 96 Attributable to: Equity holders of the parent company 108 163 83 Non-controlling interests 7 6 13 Profit for the year 115 169 96 Earnings per share Basic and diluted earnings per ordinary share - cents

• 35. 01
• 52. 8
• 26. 8
• Appendix. I

Statement of Financial Position

June 2015

R’ Million

2015 June Reviewed 2014 June Reviewed ASSETS Property, plant & equipment 3,007 3,058 Other non-current assets 676 694 Non-current assets 3,683 3,752 Current assets 2,416 2,220 Inventories 584 834 Trade & other receivables 1,017 983 Cash & cash equivalents 646 323 Other current assets 57 80 Assets held-for-sale 112 - Total assets 6,099 5,972 EQUITY AND LIABILITIES Total equity 3,184 3,269 Non-current liabilities 1,517 1,546 Long term borrowings 1,000 1,000 Deferred tax liabilities 517 546 Current liabilities 1,398 1,157 Trade and other payables and financial liabilities 1,125 1,123 Other current liabilities 273 34 Total equity and liabilities 6,099 5,972

• Appendix. II

Definition of Key Financial Figures

GPADE

Gross Profit after Distribution Expenses

Return on Capital Employed (ROCE)

EBIT before non-recurring items Equity (incl. non-controlling interests) + financial debt + liabilities from finance leases

• cash, cash equivalents and securities
• receivables from finance leases

Average Capital Employed Headline Earnings per Share (HEPS) before non-recurring items

Profit for the period before non-trading items attributable to Afrox shareholders Number of weighted average

• utstanding shares

Earnings per Share (EPS)

Profit for the period attributable to Afrox shareholders Number of weighted average

• utstanding shares

SG&A

Selling and marketing & general admination costs

EBITDA

EBIT before non-recurring items adjusted for amortisation of intangible assets and depreciation of tangible assets

Investor Calendar 2015

AGM 20 May Half-year ends 30 June Interim results released 27 August Interim Results Presentation JHB 28 August Contact Phone: +27 11 490 0444 Email: investor.relations@afrox.line.com Website: www.afrox.linde.com

• Appendix. IV