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PPC LIMITED - Trading Update for the Quarter October 2013 to December 2013

Release Date: 27/01/2014 12:00
Code(s): PPC     PDF:  
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Trading Update for the Quarter October 2013 to December 2013

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE 000170049
("PPC" or the "Company")

Trading update for the quarter October 2013 to December 2013

PPC’s expansion remains well on track and we are pleased to advise that construction of our
new operation in Rwanda is progressing well with commissioning of the plant anticipated at
the end of 2014. Construction work has commenced at our sites in Ethiopia and the
Democratic Republic of the Congo. Additional opportunities are currently being pursued and
further announcements will be made in the near term.

In December 2013, PPC acquired a 69.3% stake in Safika Cement Holdings for R377 million
which has added greater impetus to our local strategy of ‘Keeping the Home Fires Burning’.
At the end of May 2014, Pronto Readymix will be wholly owned by PPC.

The operating environment in South Africa remains tough with low single digit cement
volume growth achieved in the first quarter, along with price increases. Both the inland and
coastal regions recorded positive growth. Growth in cement volumes was also achieved in
Zimbabwe with exports from that country showing a pleasing trend.

Volumes in Botswana continue to be under pressure due to weak demand and intense
competitor activity. Similarly, sales volumes in Mozambique remain weak due to the
competitive environment. Nevertheless, some increases in selling prices were achieved in
these territories.

Performance in the lime division is beginning to show a positive trend while the South
African aggregates division has achieved pleasing volume growth due to increased off take
in road, retail and residential projects.

While the South African trading environment will remain tough and highly competitive, we
believe that our various response strategies have positioned PPC well. The release of major
infrastructural projects in this country as well as Botswana and Zimbabwe would provide a
key driver for demand of cement products.

Normalised earnings for the first half of 2014 are anticipated to reflect a year-on-year
improvement.

Any forecast financial information on which this trading update is based has not been
reviewed by the Company´s auditors.

BL Sibiya
Chairman of the board

27 January 2014

Sponsor
Merrill Lynch South Africa (Pty) Ltd

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