To view the PDF file, sign up for a MySharenet subscription.

PPC LIMITED - Reviewed Interim Results for the half-year ended 31 March 2013

Release Date: 16/05/2013 07:05
Code(s): PPC     PDF:  
Wrap Text
Reviewed Interim Results for the half-year ended 31 March 2013

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE code: PPC       JSE ISIN: ZAE 000170049
ZSE code: PPC      ZSE ISIN: ZWE 000096475
Reviewed interim results for the half-year ended 31 March 2013

- Improvement in South African and Zimbabwean cement sales    
- Cash generated from operations up 20%                 
- Normalised earnings per share increased by 4%         
- Tangible progress with our rest of Africa expansion strategy    
- Technical issues at Dwaalboom resolved                

COMMENTARY
Ketso Gordhan, CEO, said: We are pleased to report that PPCs cement sales volumes in Zimbabwe and South Africa have
increased for the period. This encouraging trend was, however, tempered by weakness in cement sales in Botswana as well as
lower demand in the lime and aggregates divisions. We remain optimistic that we will continue to progress with further
projects in line with our stated strategy in the rest of Africa in the near future.

PPCs total cement sales volumes rose by 6% for the period under review, mainly as a result of continued strong growth
in Zimbabwe and an improvement in South African cement volumes. Group revenue increased by 8% to R3 812 million (2012:
R3 529 million) on the back of increased volumes, improved cement pricing and the favourable impact of the devaluation
of the rand against the US dollar and Botswana pula. Group revenue was impacted by a 16% drop in revenue for the lime
division as a result of a 20% decline in sales volumes.

Costs of sales of R2 569 million were 9% higher (2012: R2 347 million), with electricity and depreciation rising by
18% and 11% respectively. Lower coal costs helped to offset these and the costs related to technical issues at our
Dwaalboom factory. 

Administration and other operating expenditure increased by 19% to R381 million (2012: R319 million). This increase was due 
to additional costs incurred in executing our African expansion including the finalisation of the acquisition of Cimerwa in Rwanda. 

EBITDA increased by 3% to R1 123 million (2012: R1 093 million) and operating profit excluding the impact of BEE IFRS
2 charges and Zimbabwe indigenisation costs was flat when compared to the previous reporting period at R862 million
(2012: R863 million). During the review period both group EBITDA and operating margins contracted; recording 30% (2012: 31%)
and 23% (2012: 24%) respectively. 

Cash generated from operations rose to R1 070 million (2012: R889 million) and the conversion from EBITDA to operating
cash flow improved to 94% (2012: 81%). Capital investment during the period amounted to R294 million (2012: R277
million) and the groups net debt position remains conservative at R3 916 million (2012: R3 731 million).

Tax of R245 million (2012: R281 million) was lower than in the previous reporting period, due to the removal of the
STC charge on dividends paid, following changes in tax legislation. The STC charge for 2012 was R53 million. 

Earnings per share ended 21% lower at 62 cents per share (2012: 78 cents per share), however, when IFRS 2 charges and
Zimbabwe indigenisation costs are excluded (normalised), earnings rise to 83 cents per share; a growth of 4% over the
prior period. 

The companys dividend policy remains unchanged at an annual dividend cover of between 1,2 and 1,5 times normalised
earnings. The directors have declared an interim dividend of 38 cents per share (2012: 38 cents per share).

Cement
PPCs South African cement sales volumes increased by 6% and average selling prices were up by 4%. Volume growth came
from both the inland and Western Cape regions. Industrial action at Medupi in the Limpopo Province lowered sales volumes
in that region while volumes in the Eastern Cape came under pressure due to increased competition from imported cement.

Technical process issues on kiln 2 at Dwaalboom resulted in lower than planned production output. This required that
customer demand be satisfied through sub-optimal sourcing. All technical issues have now been resolved and the factory is
again meeting expectations. 

The R100 million modernisation of Slurrys finishing mill 4 was concluded within budget in May 2013. This upgrade and
refurbishment will improve mill reliability, efficiency and environmental performance.

Sales volume growth of almost 15% was recorded for our Zimbabwean operation. This operation achieved a pleasing cost
performance with higher volumes improving fixed cost absorption as well as the non-recurrence of the imported clinker
costs of 2012. 

PPC Botswanas cement sales remain under some pressure due to low levels of demand as well as aggressive competitor
activity.
 
Exports to Mozambique declined further and continue to be impacted by increased competition, largely due to cement
imported from Asia.

Lime and aggregates
The decline in demand for lime for the period under review was due to operational challenges in the local steel and
alloys industries. Operating profit consequently fell to R41 million (2012: R95 million).

Revenues in the aggregates division remained in line with 2012 despite declining volumes in both South Africa and
Botswana. An improved revenue per ton was achieved as a result of increased sales of higher value products. Following a
review of the projected financial performance of the Quarries of Botswana business unit and the current difficulties being
experienced in that market, an impairment charge of R12 million has been included in exceptional items. 

Board changes 
With effect from 14 February 2013, Mr Sello Helepi resigned as an executive director of PPC and its associated boards
to pursue other interests outside the PPC group. Mr Helepi joined PPC during 2007 and was appointed to the board during
2009. 

Prospects and strategy
The business is making good progress with its strategy to grow into the rest of the African continent. The
construction of the Habesha cement plant, in Ethiopia, has been delayed due to some initial financing constraints, however we are
confident these constraints will be overcome and that plant construction will commence in October 2013. Following the
acquisition of Rwandas only cement producer, Cimerwa Ltd, both PPCs technical and project teams are now providing Cimerwa
with onsite support. 

Our operations in Zimbabwe celebrated their centenary in February 2013, boasting 100 years of being an integral part
of Zimbabwes infrastructure development. This experience allows us to make more informed decisions in Zimbabwe and we
remain optimistic about economic developments in this country. We are on track with the feasibility study for a new one
million ton plant in the north east of the country to meet growing demand.

PPC is also in the feasibility phase of further projects involving two other countries and we are confident that
further progress on this strategy will be made in the second half of the year.

We are particularly pleased by the successful entry of PPC into the debt capital markets and believe that the company
is well positioned to ensure the financing for our expansion projects.

The positive trend in South African cement demand is expected to continue in the near to medium term. The key to
improved growth in South Africa remains the governments execution of their infrastructure programme. PPC is exploring a
number of avenues to see how it can play a complementary role and add momentum in its execution. 

On behalf of the board
BL Sibiya            KM Gordhan                         MMT Ramano 
Chairman             Chief executive officer            Chief financial officer            15 May 2013


INTERIM DIVIDEND ANNOUNCEMENT
Notice is hereby given that the interim ordinary gross dividend of 38 cents per share has been declared payable to
ordinary shareholders in respect of the six months ended 31 March 2013. This dividend will be paid out of profits as
determined by the directors. 

In terms of dividends tax, the following information is disclosed:
- the local dividends tax rate is 15%                                                                        
- no STC credits have been utilised in this declaration and accordingly the dividend to utilise in determining the
  dividends tax is 38 cents per share                                                                        
- the dividends tax to be withheld by the company amounts to 5,7 cents per share where no exemption is applicable
- the net dividend payable to shareholders who are not exempt from dividends tax amounts to 32,3 cents per share                                    
- the issued share capital of the company at the declaration date comprises 605 379 648 shares                                                
- the companys income tax reference number is 9460015606

The important dates pertaining to this dividend for shareholders trading on the JSE Limited are as follows:
Declaration date                      Wednesday, 15 May 2013
Last day to trade                     Friday, 31 May 2013
Shares trade Ex dividend              Monday, 3 June 2013
Record date                           Friday, 7 June 2013
Payment date                          Monday, 10 June 2013

Share certificates may not be dematerialised or rematerialised between Monday, 3 June 2013 and Friday, 7 June 2013,
both dates inclusive. Transfers between the South African and Zimbabwean registers may not take place between 
Monday, 3 June and Friday, 7 June 2013, both dates inclusive.

Zimbabwe
The important dates pertaining to this dividend for shareholders trading on the Zimbabwe Stock Exchange are as
follows:            
Shares trade Ex dividend                      Monday, 3 June 2013
Record date                                   Friday, 7 June 2013
Payment date, on or shortly after             Monday, 10 June 2013

The register of members in Zimbabwe will be closed from Monday, 3 June 2013 to Friday, 7 June 2013, both days
inclusive, for the purpose of determining those shareholders to whom the dividend will be paid. The dividend payable to
shareholders registered in Zimbabwe will be paid in South African rand.

By order of the board
JHDLR Snyman                       15 May 2013
Group company secretary            Sandton


  CONDENSED CONSOLIDATED INCOME STATEMENT
                                                                    Six months ended                    Year ended   
                                                             31 March            31 March                  30 Sept   
                                                                 2013                2012                     2012   
                                                             Reviewed            Reviewed          %       Audited   
                                                                   Rm                  Rm     Change            Rm   
  Revenue                                                       3 812               3 529          8         7 346   
  Cost of sales                                                 2 569               2 347         (9)        4 809   
  Gross profit                                                  1 243               1 182          5         2 537   
  Administration and other operating expenditure                  381                 319        (19)          671   
  Operating profit before items listed below:                     862                 863                    1 866   
  BBBEE IFRS 2 charges                                             29                   5                      123   
  Zimbabwe indigenisation costs                                    82                   -                        -   
  Operating profit                                                751                 858        (12)        1 743   
  Finance costs (refer note 3)                                    184                 186          1           377   
  Investment income                                                10                  14        (29)           30   
  Profit before exceptional items                                 577                 686        (16)        1 396   
  Exceptional items                                               (12)                  -                        -   
  Share of associates' profit                                       5                   2                        7   
  Profit before taxation                                          570                 688        (17)        1 403   
  Taxation                                                        245                 281         13           557   
  Profit for the period                                           325                 407        (20)          846   
  Attributable to:~                                                                                                  
  - Ordinary shareholders                                         295                 369        (20)          768   
  - Other shareholders                                             30                  38        (20)           78   
                                                                  325                 407        (20)          846   
  Earnings per share (cents)                                                                                         
  - basic                                                          62                  78        (21)          161   
  - diluted                                                        61                  77        (21)          159   
  
  CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                                                     
  Profit for the period                                           325                 407                      846   
  Other comprehensive income, net of taxation                      79                 (28)                      29   
  Effect of translation of foreign operations                      58                 (43)                      17   
  Effect of cash flow hedges                                       21                  14                       14   
  Revaluation of available-for-sale financial investments           -                   -                       (4)   
  Taxation on other comprehensive income                            -                   1                        2                                                                                                                  
  Total comprehensive income                                      404                 379                      875   
  ~ Profit for the period is apportioned between ordinary and other shareholders based on the number of shares held by each 
    category of shareholders as a ratio of total shares in issue (refer note 5).                                                            
  NORMALISED EARNINGS PER SHARE*                                                                                     
  - Earnings per share                                             83                  80          4           185   
  - Headline earnings per share (refer note 4)                     85                  80          6           185   
  *Normalised earnings per share is calculated before the impact of BBBEE IFRS 2 charges and Zimbabwe indigenisation costs.                                                            


  CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                    31 March     31 March     30 Sept   
                                                        2013         2012        2012   
                                                    Reviewed     Reviewed     Audited   
                                                          Rm           Rm          Rm   
  ASSETS                                                                                
  Non-current assets                                   5 777        4 655       4 998   
  Property, plant and equipment                        5 035        4 318       4 483   
  Intangible assets                                      341          129         139   
  Non-current financial assets                           126          117         106   
  Investments in associates                              275           91         267   
  Deferred taxation asset                                  -            -           3   
  Current assets                                       2 245        1 819       1 909   
  Inventories                                            918          802         841   
  Trade and other receivables                          1 063          896         820   
  Cash and cash equivalents                              264          121         248                                                                                      
  Total assets                                         8 022        6 474       6 907   
  EQUITY AND LIABILITIES                                                                
  Capital and reserves                                                                  
  Stated capital (refer note 5)                       (1 236)      (1 180)     (1 181)   
  Other reserves                                         446          147         282   
  Retained profit                                      1 843        1 784       2 075   
  Equity attributable to shareholders of PPC Ltd       1 053          751       1 176   
  Non-controlling interest                               512            -           -   
  Total equity                                         1 565          751       1 176   
  Non-current liabilities                              3 827        3 853       4 008   
  Deferred taxation liabilities                          988          754         859   
  Long-term borrowings (refer note 6)                  2 451        2 686       2 716   
  Provisions and other non-current liabilities           388          413         433   
  Current liabilities                                  2 630        1 870       1 723   
  Short-term borrowings (refer note 6)                 1 729        1 166         869   
  Trade and other payables and provisions                901          704         854                                                                                     
  Total equity and liabilities                         8 022        6 474       6 907   
  Net asset value per share (cents)                      202          144         225   
                                                                                                

  CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY            
                                                                            Six months ended      Year ended   
                                                                       31 March       31 March       30 Sept   
                                                                           2013           2012          2012   
                                                                       Reviewed       Reviewed       Audited   
                                                                             Rm             Rm            Rm   
  Total equity                                                                                                 
  Balance at beginning of the period                                      1 176            955           955   
  Total comprehensive income                                                404            379           875   
  Shares purchase in terms of the FSP share 
  incentive scheme treated as treasury shares (refer note 5)                (55)           (89)          (89)   
  Securities transfer taxation on cancellation of 
  treasury shares (refer note 5)                                              -              -            (1)   
  Dividends paid                                                           (569)          (505)         (706)   
  IFRS 2 charges                                                             97             11           142   
  - BBBEE IFRS 2 charges                                                     29              5           123   
  - Zimbabwe indigenisation IFRS 2 charges                                   55              -             -   
  - FSP IFRS 2 charges                                                       13              6            19   
  Non-controlling interest arising on acquisition of subsidiary             512              -             -   
  Balance at end of the period                                            1 565            751         1 176   


  CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


                                                                                   Six months ended      Year ended   
                                                                              31 March       31 March       30 Sept   
                                                                                  2013           2012          2012   
                                                                              Reviewed       Reviewed       Audited   
                                                                                    Rm             Rm            Rm   
  Cash flow from operating activities                                                                                 
  Operating cash flows before movements in working capital                       1 074          1 091         2 317   
  Net movement in working capital                                                   (4)          (202)          (33)   
  Cash generated from operations                                                 1 070            889         2 284   
  Net finance costs paid and dividends received                                   (104)          (105)         (216)   
  Taxation paid                                                                   (230)          (261)         (417)   
  Cash available from operations                                                   736            523         1 651   
  Dividends paid                                                                  (569)          (505)         (706)   
  Net cash flow from operating activities                                          167             18           945   
  Investment in property, plant and equipment                                     (294)          (277)         (609)   
  Acquisition of subsidiary companies (refer note 7)                              (140)           (42)          (42)   
  Acquisition of equity in associates                                                -              -          (172)   
  Other investing movements                                                       (26)              -           (26)   
  Net cash flow from investing activities                                         (460)          (319)         (849)   
  Proceeds received from issuance of corporate bond (refer note 6)                 650              -             -   
  Purchase of shares in terms of the FSP share scheme (refer note 5)^              (55)           (89)          (89)   
  Other net financing movements                                                   (302)           287            17   
  Net cash flow from financing activities                                          293            198           (72)   
  Net (decrease)/increase in cash and cash equivalents                               -           (103)           24   
  Cash and cash equivalents at beginning of the period                             248            224           224   
  Cash and cash equivalents acquired on acquisition of subsidiary company            6              -             -   
  Impact of exchange rate differences on opening cash and cash equivalents          10              -             -   
  Cash and cash equivalents at end of the period                                   264            121           248   
  Cash earnings per share (cents)*                                                 142            100           315   
  * Cash earnings per share is calculated using cash available from operations divided by the total weighted average number 
    of shares in issue for the period (refer note 5).                                                 
  ^ Shares purchased in terms of the FSP share scheme have been reclassified to financing activities as they represent movements 
    in equity.                                                


  NOTES TO THE REVIEWED HALF-YEAR RESULTS
  1.     Basis of preparation                                                                                                                                     
         The condensed consolidated interim financial report for the six months ended 31 March 2013 has been prepared in accordance 
	 with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), 
	 as issued by the International Accounting Standards Board (in particular International Accounting Standard 34 Interim Financial Reporting), 
	 the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by 
	 Financial Reporting Standards Council, the JSE Limiteds Listings Requirements and the requirements of the South African Companies Act. 
	 This report was compiled under the supervision of the chief financial officer, MMT Ramano CA(SA).  
		 
         The accounting policies and methods of computation used are consistent with those used in the preparation of the annual financial statements 
	 for the year ended 30 September 2012, except for the following revised accounting standards and interpretations that were adopted during the 
	 period, and which did not have an impact on the reported results: 
		 
         IAS 1 (amendment) Presentation of Items of Other Comprehensive Income                                                                                    
         IAS 12 Deferred Taxation (recovery of underlying assets) 
		 
         The condensed consolidated interim financial information for the period ended 31 March 2013 has been reviewed by the groups auditors, Deloitte & Touche. 
	 The review was conducted in accordance with International Standard on Review Engagement 2410 Review of Interim Financial Information performed by the 
	 Independent Auditor of the Entity. A copy of their unmodified review report is available for inspection at the companys registered office. Any reference 
	 to future financial performance included in this announcement, has not been reviewed or reported on by the groups auditors.                                                           
                                                                                               31 March        31 March       30 Sept   
                                                                                                   2013            2012          2012   
                                                                                               Reviewed        Reviewed       Audited   
                                                                                                     Rm              Rm            Rm   
  2.     Profit before taxation                                                                                                         
         Included in profit before taxation are:                                                                                        
         Amortisation of intangible assets                                                           17              11            22   
         Consultation fees incurred on BBBEE transaction                                              -               5            15   
         Depreciation                                                                               244             219           439   
         Donation made in terms of PPC Zimbabwes indigenisation transaction                         27               -             -   
         Impairment losses on plant and equipment and intangible assets                              12               -             -   
         IFRS 2 charges:                                                                                                                
         - BBBEE IFRS 2 charges                                                                      29               5           123   
         - Zimbabwe indigenisation IFRS 2 charges                                                    55               -             -   
         - cash settled IFRS 2 charges                                                                2              19            22   
         - equity settled IFRS 2 charges                                                             13               6            19   
  3.     Finance costs                                                                                                                  
         Bank and other borrowings                                                                   36              24            52   
         Long-term loans                                                                             82              83           166   
         BBBEE funding transaction                                                                   65              62           136   
         - dividends on redeemable preference shares                                                 29              29            68   
         - long-term borrowings                                                                      36              33            68   
         Finance lease interest                                                                       1               2             4   
         Fair value (gains)/losses on financial instruments                                          (9)              5             3   
         Unwinding of discount on rehabilitation provisions                                          10              11            22   
                                                                                                    185             187           383   
         Capitalised to plant and equipment                                                          (1)             (1)           (6)   
                                                                                                    184             186           377                                                                                                                       
  4.     Headline earnings per share                                                                                                    
         Headline earnings per share (cents)                                                                                            
         - basic                                                                                     64              78           162   
         - diluted                                                                                   63              77           160   
         - basic (excluding BBBEE IFRS 2 and Zimbabwe indigenisation charges)                        85              80           185   
         - diluted (excluding BBBEE IFRS 2 and Zimbabwe indigenisation charges)                      84              79           183   
         Determination of headline earnings per share (cents)                                                                           
         Earnings per share                                                                          62              78           161   
         Adjusted for:                                                                                                                  
         - Impairment of plant and equipment and intangible assets                                    2               -             -   
         - Loss on disposal of property, plant and equipment and 
	   intangible assets                                                                          -               -             1   
         Headline earnings per share                                                                 64              78           162   
         BBBEE IFRS 2 and Zimbabwe indigenisation charges                                            21               2            23   
         Headline earnings per share (excluding BBBEE IFRS 2 and Zimbabwe 
	 indigenisation charges)                                                                     85              80           185   
         Headline earnings (Rm)                                                                                                         
         Profit for the period                                                                      325             407           846   
         Impairment losses on financial assets                                                        -               -             1   
         Impairment of plant and equipment and intangible assets                                     12               -             -   
         Taxation on impairment of plant and equipment and intangible assets                         (1)              -             -   
         Reversal of impairment                                                                       -               -            (1)   
         Loss on disposal of property, plant and equipment and 
	 intangible assets                                                                            -               -             3   
         Taxation on loss on disposal of property, plant and equipment 
	 and intangible assets                                                                        -               -            (1)   
         Headline earnings                                                                          336             407           848   
         Attributable to:                                                                                                               
         - Ordinary shareholders                                                                    305             369           769   
         - Other shareholders                                                                        31              38            79   
         Headline earnings                                                                          336             407           848   
         BBBEE IFRS 2 charges and Zimbabwe indigenisation costs                                     111               5           123   
         Headline earnings (excluding BBBEE IFRS 2 and Zimbabwe 
	 indigenisation charges)                                                                    447             412           971   
         Attributable to:                                                                                                               
         - Ordinary shareholders                                                                    405             374           881   
         - Other shareholders                                                                        42              38            90   
		 
                                                                                               31 March        31 March       30 Sept   
                                                                                                   2013            2012          2012   
                                                                                               Reviewed        Reviewed       Audited   
  5.     Stated capital                                                                                                                 
         Number of shares and weighted average number of shares                             Shares (000)    Shares (000)  Shares (000)   
         Number of shares                                                                                                               
         Total shares in issue at beginning of the period                                       566 030         586 170       586 170   
         Add: New shares issued in terms of the second BBBEE transaction±                        39 350               -             -   
         Less: Treasury shares owned by wholly owned group subsidiary company                         -         (20 140)            -   
         Less: Cancellation of treasury shares owned by wholly owned group 
	 subsidiary company^                                                                          -               -       (20 140)   
         Less: Shares held by consolidated BBBEE trusts and funding SPVs 
	 treated as treasury shares*                                                            (37 972)        (37 991)      (37 991)   
         Less: New shares issued in terms of the second BBBEE transaction 
	 treated as treasury shares±                                                            (39 350)              -             -   
         Less: Shares held by consolidated Porthold Trust (Private) Limited 
	 treated as treasury shares@                                                             (1 285)         (1 285)       (1 285)   
         Less: Shares purchased in terms of the FSP share incentive scheme 
	 treated as treasury shares#                                                             (4 745)         (3 080)       (3 080)   
         Total shares in issue (net of treasury shares)                                         522 028         523 674       523 674   
         - Ordinary                                                                             473 470         475 116       475 116   
         - Other$                                                                                48 558          48 558        48 558   
          Weighted average number of shares                                                                                             
         - Used for earnings and headline earnings per share                                    474 794         476 914       476 009   
         - Used for dilutive earnings and headline earnings per share                           481 920         482 371       481 470   
         - Used for cash earnings per share                                                     522 028         523 674       524 567                                                                                                       
         Stated capital~                                                                                                                
         Balance at beginning of the period                                                      (1 181)              -             -   
         Transfer from share capital and premium                                                      -               -        (1 181)   
         Shares purchased in terms of the FSP share incentive scheme 
	 treated as treasury shares#                                                                (55)              -             -   
         Balance at end of the period                                                            (1 236)              -        (1 181)   
         Issued share capital                                                                                                           
         Balance at beginning of the period                                                           -              53            53   
         Transfer to stated capital~                                                                  -               -           (53)   
         Balance at end of the period                                                                 -              53             -   
         Share premium                                                                                                                  
         Balance at beginning of the period                                                           -          (1 144)       (1 144)   
         Securities transfer taxation on cancellation of shares^                                      -               -            (1)   
         Shares purchased in terms of the FSP share incentive scheme 
	 treated as treasury shares#                                                                  -             (89)          (89)   
         Balance at end of the period                                                                 -          (1 233)       (1 234)   
         Transfer to stated capital~                                                                  -               -         1 234   
         Total issued share capital and premium                                                       -          (1 180)            -   
         ± Shares issued in terms of the second BBBEE transaction which was approved in September 2012. This transaction was facilitated by means of a 
	   notional vendor funding (NVF) mechanism resulting in the new shares only participating in 20% of the dividends declared by PPC until the end 
	   of the NVF period, 30 September 2019. The entities holding these shares are consolidated into the PPC group during the term of the transaction 
	   in accordance with IFRS.                                                           
         ^ In 2012, the treasury shares owned by PPC Cement (Pty) Ltd were bought back by PPC Ltd and cancelled after the repurchase.                                                           
         * In terms of IFRS SIC Interpretation 12 (Consolidation - Special Purpose Entities), certain of the BBBEE trusts and trust funding SPVs are consolidated, 
	   and as a result, shares owned by these entities are carried as treasury shares on consolidation.                                                           
         @ Shares owned by a Zimbabwean employee trust company treated as treasury shares in terms of SIC Interpretation 12.                                                           
         # In 2011 and 2012, shareholders approved the forfeitable share plan (FSP) to retain and incentivise employees of PPC. During the period, the company acquired 
	   1 664 880 (2012: 3 079 853) shares on the open market and these shares are carried as treasury shares.                                                           
         $ The shares issued to the Strategic Black Partners and Community Service Groups, in terms of PPCs first BBBEE transaction, have been pledged as security for 
	   their funding obligations and as a result are treated as a separate class of equity.                                                           
         ~ In 2012, the company increased its authorised ordinary shares and changed its par value ordinary shares to ordinary shares with no nominal or par value. 
	   The preferences, rights, limitations and other terms attaching to the no par value shares in the company have the same preferences, rights, limitations and other 
	   terms which were attached to the par value authorised ordinary shares.                                                                                                                                                                                                                  
  6.     Borrowings                                                                                                                                               
         - Long-term loan*                                                                        1 516           1 517         1 518   
         - Corporate bonds$                                                                         650               -             -   
         - Finance lease liability@                                                                   -              14             -   
         - Consolidated in terms of acquistion of subsidiary company#                                84               -             -   
         - Preference shares^                                                                        88             110           110   
                                                                                                  2 338           1 641         1 628   
         BBBEE funding transaction~                                                                 113           1 045         1 088   
         - Preference shares                                                                        113             473           495   
         - Long-term borrowings                                                                       -             572           593   
         Total long-term borrowings                                                               2 451           2 686         2 716   
         Short-term borrowings and short-term portion of long-term borrowings                     1 729           1 166           869   
         Total borrowings                                                                         4 180           3 852         3 585   
         * Comprises a bullet loan, bearing interest at a fixed rate of 10,86% p.a., and is repayable in December 2016, with interest payable                                                            
         semi-annually.                                                                                                                                           
         $ In March 2013, PPC issued a three-year unsecured floating rate corporate bond at a variable coupon of three-month JIBAR plus 1,26% per annum. This bond was issued 
           under the companys R6 billion Domestic Medium Term Note programme.                                                           
         @ Bears interest at a fixed rate of 13,1% with interest and capital repayable annually with the last payment payable in April 2013.                                                           
         # Loan assumed on acquisition of Cimerwa Ltd. Loan bears interest at a rate of 16% p.a., and is repayable in 2017. The loan is denominated in US dollars and is secured 
	   against Cimerwas land and building.                                                           
         ^ Redeemable preference shares bearing semi-annual dividends, with variable interest rates linked to prime and fixed rates between 9,24% to 9,37% p.a. and compulsory 
	   annual redemptions ending December 2016.                                                           
         ~ Redeemable preference shares bearing semi-annual dividends, with variable interest rates linked to prime and compulsory annual redemptions until December 2016, and 
	   loans bearing interest, after giving effect to fixed-for-variable interest rates swaps, at a rate of 11.36% p.a., with interest and capital repayable in December 2013. 
	   As part of the funding is repayable in December 2013, R972 million has been reflected under short-term borrowings.                                                           
           In terms of IFRS, these long-term borrowings have been consolidated as PPC Ltd has provided guarantees for funding that had an outstanding balance of R1 081 million as 
	   at 31 March 2013 (March 2012: R1 015 million and September 2012: R1 066 million).                                                           
         The companys borrowing powers are not restricted.                                                                                                       
  7.     Acquisition of subsidiary companies                                                                                                      
         Property, plant and equipment                                                              432              26            26   
         Intangible assets (including goodwill)                                                     219              28            28   
         Current assets                                                                             751               5             5   
         Long-term provisions and deferred taxation                                                (187)             (7)           (7)   
         Current liabilities                                                                        (74)              -             -   
         Non-controlling interest                                                                  (512)              -             -   
         Total consideration                                                                        629              52            52   
         Paid to Cimerwa for new equity in the company                                              181               -             -   
         Payable to Cimerwa for new equity in the company                                           312               -             -   
         Paid to previous shareholders of Cimerwa                                                   136               -             -   
                                                                                                    629               -             -   
         Paid to previous shareholders of Botswana quarries                                           4              42            42   
         Payable to previous shareholders of Botswana quarries                                        -              10            10   
                                                                                                      4              52            52   
         Impact of the transactions on the results for the respective period ended:                                                     
         Revenue                                                                                     26               9            18   
         Operating loss                                                                              (5)             (3)           (4)   
         Loss attributable to shareholder                                                             7              (4)           (8)   
         Impact on EPS and HEPS (cents per share)                                                     1              (1)           (1)   
         In January 2013 PPC acquired a 51% equity stake in a Rwandan cement company, Cimerwa Ltd. The transaction value amounts to US$69,4 million of which US$15 million was paid 
	 to previous shareholders of the company, while a further US$20 million was paid to subscribe for shares in Cimerwa. The remaining purchase consideration, for further 
	 subscription in shares in Cimerwa, will be paid in three tranches, with the last payment being in December 2013. As the company is consolidated and US$54,4 million is payable 
	 to Cimerwa, only the US$15 million payable external to the PPC group is reflected as a cash flow outside the consolidated PPC group. The fair values of assets acquired and 
	 liabilities assumed were determined based on provisional allocation of the total consideration.                                                           
         In October 2011 all conditions precedent with regards to the transaction to acquire three aggregate quarries in Botswana were met. The transaction value amounted to R52 million 
	 and the consideration paid amounted to R4 million (2012: R42 million). The purchase consideration outstanding is payable on the second anniversary of the transaction.                                                           
  8.     Commitments                                                                                                                              
         - Contracted capital commitments                                                         1 018             180           192   
         - Approved capital commitments                                                             164             307           125   
         Capital commitments*                                                                     1 182             487           317   
         Operating lease commitments                                                                 18              17            19   
                                                                                                  1 200             504           336   
         *Excludes the second 25% tranche on acquisition of Pronto Holdings (Pty) Limited which is payable in June 2013 and the remaining 50% payable in 2014. The purchase consideration is determined 
	 using an EBITDA multiple less net debt.                                                           
         Commitments for capital expenditure are stated in current values which, together with expected price escalations, will be financed from surplus cash generated from operations 
	 and borrowing facilities available to the group.                                                                                                                                                                                                             
  9.     Segment analysis                                                                                                                                         
         The group discloses its operating segments according to the business units which are managed by the group executive committee. These segments comprise cement, lime, aggregates 
	 and BBBEE.                                                           
         Revenue                                                                                                                                          
         Cement                                                                                   3 329           2 975         6 246   
         Lime                                                                                       365             433           838   
         Aggregates                                                                                 138             138           299   
                                                                                                  3 832           3 546         7 383   
         Less: Inter-segment revenue                                                                (20)            (17)          (37)   
         Total revenue                                                                            3 812           3 529         7 346   
         - South Africa                                                                           2 959           2 847         5 786   
         - Rest of Africa                                                                           853             682         1 560   
         EBITDA                                                                                                                         
         Cement                                                                                   1 065             965         2 087   
         Lime                                                                                        61             113           188   
         Aggregates                                                                                   9              18            56   
         BBBEE trusts and trust funding SPVs                                                        (12)             (3)           (4)   
         EBITDA                                                                                   1 123           1 093         2 327   
         Operating profit                                                                                                               
         Cement                                                                                     834             763         1 682   
         Lime                                                                                        41              95           151   
         Aggregates                                                                                  (1)              8            37   
         BBBEE trusts and trust funding SPVs                                                        (12)             (3)           (4)   
         Operating profit before items listed below:                                                862             863         1 866   
         BBBEE IFRS 2 charges                                                                       (29)             (5)         (123)   
         Zimbabwe indigenisation costs                                                              (82)              -             -   
         Operating profit                                                                           751             858         1 743   
         Assets                                                                                                                         
         Cement                                                                                   7 289           5 722         6 153   
         Lime                                                                                       463             478           467   
         Aggregates                                                                                 268             272           285   
         BBBEE trusts and trust funding SPVs                                                          2               2             2   
         Total assets                                                                             8 022           6 474         6 907   
  10.    Events after the reporting date                                                                                                                          
         There are no events that occurred after the reporting date that may have a material impact on the groups reported financial position at 31 March 2013.                                                           


ADMINISTRATION
Directors
BL Sibiya (Chairman), KM Gordhan (Chief executive officer), S Abdul Kader, P Esterhuysen, ZJ Kganyago,            
AJ Lamprecht, NB Langa-Royds, MP Malungani, S Mhlarhi, B Modise, MMT Ramano, TDA Ross, J Shibambo            

Registered office
180 Katherine Street, Sandton, South Africa
PO Box 787416, Sandton 2146, South Africa

Transfer secretaries
Link Market Services SA (Pty) Ltd
11 Diagonal Street, Johannesburg, South Africa
PO Box 4844, Johannesburg 2000, South Africa

Transfer secretaries Zimbabwe
Corpserve (Private) Limited
4th Floor, Intermarket Centre, Corner First Street/Kwame Nkrumah Avenue
Harare, Zimbabwe
PO Box 2208, Harare, Zimbabwe

Company Sponsor
Merrill Lynch South Africa (Pty) Limited
            
DISCLAIMER
This document including, without limitation, those statements concerning the demand outlook, PPCs expansion projects
and its capital resources and expenditure, contain certain forward-looking views. By their nature, forward-looking
statements involve risk and uncertainty and although PPC believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly,
results could differ materially from those set out in the forward-looking statements as a result of, among other factors,
changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory
environment and other government action and business and operational risk management. While PPC takes reasonable care to
ensure the accuracy of the information presented, PPC accepts no responsibility for any consequential, indirect, special
or incidental damages, whether foreseeable or unforeseeable, based on claims arising out of misrepresentation or
negligence arising in connection with a forward-looking statement. This document is not intended to contain any profit forecasts
or profit estimates.

www.ppc.co.za
Date: 16/05/2013 07:05:00 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.

Share This Story