SOLID GROWTH FROM PPC

SOLID GROWTH FROM PPC                                                           
Pretoria Portland Cement Company Limited ("PPC" or "the company")               
(Registration number 1892/000667/06)                                            
JSE code: PPC       ISIN code: ZAE 000005559                                    
Media Release                                                                   
SOLID GROWTH FROM PPC                                                           
PRETORIA PORTLAND Cement (PPC) used Kambuku, its Value-Based Management system, 
to turn a gratifying rise in cement demand into a 38% increase in headline      
earnings per share in the year to September.                                    
Headline earnings came in at 1 154 cents (2002: 838,3 cents) per share.         
All units of the cash-flush cement and lime producer achieved record levels of  
profitability. Cement growth exceeded expectations and the margin drop to the   
bottom line gave profits a boost.                                               
PPC has declared a final dividend of 550  (+38%) cents per share and another    
special dividend of 650 cents. This makes a total of 1375 cents for the year.   
PPC expects local cement demand to grow by four to five percent in the year     
ahead but lime demand to remain stagnant. It warns that its costs are           
outstripping the producer price index and that Spoornet wants to raise cement   
and lime transport prices by 40%. The group nevertheless forecasts improved     
operating profits and cash flow in 2004.                                        
Chief executive John Gomersall emphasised the role that Value Based Management  
has played.                                                                     
He said: "Obviously a superb operating environment has been a growth driver. But
Kambuku encourages all employees to add value to the business. It boosted       
productivity in every unit. All PPC"s units operated efficiently and several new
kiln production records were set. Cement distribution logistics were also       
further optimised, leading to cost savings and better customer service."        
PPC"s earnings have grown at an average annual compound rate of 17.8% pa in the 
past 10 years - and the company was recently placed sixth in the Deloitte &     
Touche Best South African Company to Work For ratings.                          
Thanks to increasing retail and infrastructure spending in SA, cement sales     
approximated 4-million tons for the first time. The main areas of growth were   
Gauteng, Western and Southern Cape and the Eastern Cape, where the Coega harbour
project is in full swing. The group"s cement operating profit rose 39% to R740, 
5-million.                                                                      
Porthold, the Zimbabwean operation, struggled under hyper inflation and foreign 
exchange shortages in that country. It did remain cash flow positive and        
returned a small operating profit.                                              
Lime demand declined because of reduced activity in the steel sector but, thanks
to the renegotiation of prices on long term contracts and partly to Kambuku,    
lime profits rose 48% to R98,8-million.                                         
Strong volumes, reduced waste and improved efficiency helped Afripack"s profits 
to soar by 53% to R26,9-million. This success should play a role in negotiations
between PPC and Nozala Investments on the possible sale of PPC"s stake in       
Afripack.                                                                       
Group operating profit was thus ahead by 40% at R866, 2-million. Income from    
investments - mainly interest on the group"s large cash holdings - rose 38% to  
make profit before exceptional items 45% better at R943, 1-million.             
Exceptional items, representing mainly one-off profits on the sale of housing   
sold to employees, this year were R4,1-million. Last year exceptional items     
totalled R158,9-million and included profits on the sale of associates NPC and  
Ash Resources.                                                                  
The group"s normal tax rate was largely unchanged at 27% but its big cash       
payouts by way of special dividend have resulted in significant Secondary Tax on
Companies - this year R40,3-million (R33,6-million).                            
Capital spending amounted to R169, 2-million (R108, 3-million). The major items 
included the purchase of several new quarry vehicles, the acquisition of land   
and mineral rights and the modernisation of coating and printing equipment at   
Afripack.                                                                       
Long serving non-executive director, Des Arnold retired in March. Earlier in the
year finance director Peter Nelson, indicated his intention to resign at the end
of the year. Mr Peter Esterhuysen has been appointed director, finance and      
administration with effect from 1st December.                                   
Ends                                                                            
Issued by:       David Carte, Meropa Communications (Pty) Ltd                   
               Tel 011-772-1000, 082-440-2608                                   
On behalf of:       PPC Limited                                                 
Contact:       John Gomersall, chief executive officer                          
              Tel 011-455-1015                                                  
Date: 06/11/2003 07:01:53 AM Supplied by www.sharenet.co.za                     
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