Sharenet Sites 
Sharenet Sites
PPC - Pretoria Portland Cement Company Limited - Trading Statement and Consolidation of Portland Holdings Limited PRETORIA PORTLAND CEMENT COMPANY LIMITED (Incorporated in the Republic of South Africa) (Company registration number: 1892/000667/06) JSE Code: PPC ISIN: ZAE000125886 ("PPC" or "the company") Trading Statement and Consolidation of Portland Holdings Limited In terms of the Listing Requirements of the JSE Limited, companies are required to publish a Trading Statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by more than 20% from those of the previous corresponding period. The board of directors of PPC advises that its earnings per share and headline earnings per share for the year ended 30 September 2009 are expected to be between 20% - 30% less, and 35% - 45% less respectively compared with the year ended 30 September 2008. Shareholders are reminded that the primary reason for this decrease is the International Financial Reporting Standards (IFRS) 2 charge which is a consequence of the BBBEE transaction and which was anticipated in the SENS announcement on 28 August 2008 and outlined in the circular to shareholders on 16 October 2008. This was also the reason for the Trading Statement released on SENS on 12 May 2009 regarding PPC`s interim results for the six months ended 31 March 2009. Furthermore, PPC`s interim results published on SENS on 12 May 2009, included a statement indicating that the results of its wholly owned Zimbabwean subsidiary, Portland Holdings Limited ("Porthold"), were not consolidated as at 31 March 2009 as there remained significant constraints impacting on the normal operations of Porthold and the PPC board had concluded that management did not have the ability to exercise effective control over the business at the time. Zimbabwe`s move to a US dollar and Rand based economy has restored key relevant fundamentals to the economy. This has removed many of the distortions that existed in the Zimbabwean economy, which included unrealistic local market cement price determination, not receiving the full benefit of export proceeds, exchange rate uncertainty and foreign currency restrictions, shortages of manufacturing inputs and the effects of extreme hyperinflation. Due to changes in the above Zimbabwean macroeconomic conditions the directors of PPC are of the opinion that the requirements for effective control over Porthold, in terms of the definition and requirements of the International Accounting Standards (IAS) 27 (Consolidated and Separate Financial Statements), have been met, and accordingly Porthold was consolidated from 30 September 2009 (the "effective date"). The carrying value of the investment in Porthold at the effective date was R260 million. In terms of IFRS 3 (revised 2008), Business Combinations, the effective date fair value of Porthold was determined at R473 million, and the appropriate balance sheet values of Porthold will be included in the PPC consolidated balance sheet from the effective date. The resultant take-on gain of R213 million will be recognised in the income statement and will be included in net profit, but excluded from headline earnings. Earnings per share and headline earnings per share excluding both the IFRS 2 charge relating to the BBBEE transaction and the gain on consolidation of Porthold, do not differ by more than 20% from those reported for the previous corresponding period. The information contained in this trading statement has not been reviewed or reported on by the company`s external auditors. PPC will release its annual results for the period ended 30 September 2009 on or around 11 November 2009. 28 October 2009 Sponsor Merrill Lynch South Africa (Pty) Limited Notes to Editors Porthold is a wholly owned subsidiary of PPC which operates cement clinker and cement milling plants in Colleen Bawn and Bulawayo respectively. Porthold is Zimbabwe`s major cement producer with a capacity of approximately 760,000 tons of cement per year. Both plants contain some of the most modern cement manufacturing technology in southern Africa. Porthold produces the well- known "Unicem" brand which is a versatile multi-purpose cement. Both plants are fully staffed and utilisation levels have improved significantly from below 10% in the first part of the calendar year to currently between 35% and 45%. Local cement selling prices are now in line with regional cement prices. Date: 28/10/2009 07:05:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
