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Audited preliminary summarised group results for the year ended 30 September 2014
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
Audited preliminary summarised group results for the year ended 30 September 2014
- Revenue up 9% to R9 billion
- Headline earnings per share flat despite challenging local trading conditions cushioned
by earnings accretive acquisitions
- Annual dividend of 114 cents per share after a final dividend declaration of 76 cents per share
- Net debt:EBITDA of 2,4x with investment grade rating affirmed by S&P
- Cash conversion ratio of 108% achieved
- 600 000 ton per annum plant in Rwanda to be commissioned in first half of 2015
- Over R4 billion of project finance secured for construction projects that are underway in Rwanda,
the Democratic Republic of the Congo, Zimbabwe and Ethiopia
- On track to achieve 40% of revenue from the rest of Africa by 2017
- Successfully concluded a number of key environmental upgrades
Commentary
Bheki Sibiya, executive chairman said: “PPC’s rest of Africa expansion strategy is progressing well with construction
underway in four countries. The feasibility study in Algeria remains in progress. Group cement sales ended 2% higher
than last year, with improvements in export sales and the consolidation of sales from CIMERWA, our operations in Rwanda,
and newly acquired Safika Cement and Pronto Readymix businesses. These improvements were partly offset by declining sales
volumes in South Africa. In addition, R100 million of shares from the BBBEE I transaction in 2008 have now vested in the
hands of employees.”
COMMENTARY
Summary of key highlights
PPC delivered satisfactory results despite a challenging year. Performance was hampered by industrial action on the platinum
belt which had an adverse impact on trading conditions in South Africa. This was partly offset by the consolidation of acquired
operations Safika Cement and Pronto Readymix. Performance in the other African segments was mixed, with existing operations
marginally increasing their contribution to group revenue. Zimbabwe, the largest contributor, achieved another pleasing result.
The CIMERWA upgrade remains on track to be commissioned in the first half of 2015, with construction underway in the DRC, Zimbabwe
and Ethiopia. Group cash conversion was robust; a ratio of 1,08 times was achieved.
PPC group performance
PPC’s total cement sales volumes improved by 2% for the year under review. Group revenue increased by 9% to R9 039 million
(2013: R8 316 million) mainly attributable to the consolidation of Safika Cement and Pronto Readymix as well as the full year impact
of CIMERWA. On a like-for-like basis, revenue would have been 3% above last year. Group revenue was further supported by a 2% and 18%
growth in revenue for the lime and aggregates divisions respectively.
Cost of sales of R6 266 million was 13% higher (2013: R5 546 million), with gross profit flat on the comparative year at R2 773 million
(2013: R2 770 million). Administration and other operating expenditure increased by 21% to R1 030 million (2013: R853 million).
The main drivers of the year-on-year increases can be ascribed to the consolidation of the new businesses acquired, currency movements
and additional costs incurred in executing the company’s African expansion strategy. Excluding the impact of acquired overheads,
administration and other operating expenditure would have reflected modest growth of 6%.
Normalised EBITDA decreased by 5% to R2 374 million (2013: R2 504 million) and operating profit, excluding the impact of BBBEE IFRS 2 charges,
Zimbabwe indigenisation and restructuring costs, was down 11% on the prior year at R1 759 million (2013: R1 981 million). During the year
under review, EBITDA and operating margins contracted to 26% (2013: 30%) and 19% (2013: 24%) respectively.
Following an impairment assessment review, an impairment charge of R110 million was recorded. This is related mainly to goodwill and
accelerated depreciation of the existing 100 000 ton per annum cement factory in CIMERWA, that will be decommissioned as the new factory comes
online early in 2015.
Cash generated from operations amounted to R2 583 million (2013: R2 885 million), following lower year-on-year net reductions in working capital;
mainly as a result of once-off payments of the interest swap liability of R113 million and restructuring costs of R64 million being settled
in 2014, with both having been provided for in the second half of the 2013 financial year. The company achieved a cash conversion ratio of 108%.
Capital investment during the year amounted to R2 119 million (2013: R964 million) with over R1 billion being spent on the new projects in Rwanda,
Zimbabwe and the DRC. The group’s increased net debt position of R5 528 million (2013: R3 554 million), at year end was mainly as a result of
this capital expenditure.
Taxation of R356 million (2013: R507 million) was lower than in the prior year, following the revenue authority’s favourable assessment of
prior years’ taxation returns. This has resulted in the group’s effective taxation rate falling to 30%.
Headline earnings per share ended in line with 2013 at 179 cents per share. Normalised earnings of 170 cents per share, after adjusting for
IFRS 2 charges, Zimbabwe indigenisation costs, restructuring costs, impairments and prior year taxation adjustments, was 21% lower than the
prior year.
The directors have declared a final dividend of 76 cents per share (2013: 118 cents per share), bringing the full year dividend to
114 cents per share (2013: 156 cents per share). This equates to a dividend cover of 1,5 times. Given the company’s expansion strategy,
the board has resolved to increase the company’s dividend cover range from 1,2 to 1,5 times to a new range of 1,8 to 2,5 times.
Cement
PPC’s group cement revenue rose 7% to R7 710 million (2013: R7 219 million) while the EBITDA fell 5% to R2 132 million (2013: R2 248 million).
Consequently the EBITDA margin fell to 27,7% from 31,1% the previous year.
South Africa
The acquisition of Safika Cement is already beginning to bear fruit as PPC’s cement sales volumes in South Africa decreased by only 2%
whilst on a like-for-like basis with the exclusion of Safika Cement, the volumes were down 7%. This decline was due to poor economic growth,
industrial action on the platinum belt and in the steel industry, increased cement imports and local competition as well as above-average
rainfall in the inland regions. Volume growth was, however, experienced in the Limpopo and Eastern Cape regions. The challenging macroeconomic
environment, coupled with declining capacity utilisation levels in the local cement industry, have constrained growth in selling prices,
limiting our ability to fully recover cost increases. A 3% increase in the average selling price was realised during the year under review.
The South African operations reported an 8% increase in cement delivered cost of sales, on a rand per ton basis. Cost savings in coal and
overheads were unfavourably impacted by expenditure on maintenance and refractories as well as a marked increase in outbound logistic costs.
The lower volumes have negatively impacted fixed cost absorption.
The operations teams successfully concluded a number of upgrade projects including the upgrading of the bag house filter at De Hoek kiln 5,
leading to dust emissions falling to below 10mg/Nm3 and significant savings in water consumption. At the Slurry operations, air-quality upgrades
on finishing mill 1 and 2 were completed in order to comply with environmental legislation to be introduced in 2020.
International
Zimbabwe: Zimbabwe continued to enjoy a fifth consecutive year of increasing cement demand albeit on a slower growth trajectory than the
previous years. PPC Zimbabwe continued to realise sales volume increases ahead of local industry growth and good progress was made in growing
exports to neighbouring countries, at improved pricing.
Botswana: The increase in available cement capacity and competitiveness in South Africa have had an adverse impact on our Botswana volumes.
The retail segment particularly has become increasingly price competitive, once again limiting our ability to fully recover cost increases.
Mozambique: Aligned with our focus on the construction segment, a decision was taken during the year to refocus our presence in Mozambique by
relocating the Maputo office to Tete. We will continue to supply cement into the southern Mozambique market directly from South Africa while
our Zimbabwe factory will supply the Tete region.
Rwanda: Significant progress has been made in improving the existing plant’s performance; sales exceeded the targeted 100 000 ton mark,
in line with the current plant’s full capacity. While the majority of these sales were in Rwanda, export volumes continued to increase in line
with our target market focus.
Lime, aggregates and readymix
Revenue in the lime business ended 2% higher following increases in limestone sales volumes in excess of 20%, while burnt product sales volumes
were 6% lower than prior year on reduced offtake from the steel and alloys industries. This was, however, offset by cost of sales rising 11% on
a rand per ton basis; negatively impacted by fuel and manpower costs, which included an R11 million restructuring cost following a right-sizing
review. Consequently, EBITDA fell to R136 million (2013: R162 million).
The successful conversion of an electrostatic precipitator to a bag house filter for lime kiln 6 at a capital cost of R29 million ensures, not
only environmental compliance, but also that all the main production units at Lime Acres are now fully equipped with state of the art off-gas
cleaning equipment.
Aggregates’ revenues ended 18% higher than last year at R395 million (2013: R335 million) boosted by increased sales volumes of 9% and 10% in
South Africa and Botswana respectively. EBITDA was 33% higher at R61 million (2013: R46 million).
We purchased the final 50% stake in Pronto Readymix for R280 million and this business has already contributed positively to the results.
Africa growth strategy
Our expansion strategy gained solid momentum in the review period and we now have signed engineering, procurement and construction (“EPC”)
contracts in place in four different countries. All four projects are fully funded.
PPC, in partnership with the Barnet Group, is building a one million ton per annum integrated cement plant for US$280 million in the
western Democratic Republic of the Congo.
Significant progress has been made with the 600 000 ton per annum plant in Rwanda which will be commissioned in the first half of 2015.
Operational readiness for production is progressing well and the necessary supply contracts have been concluded. The workforce has largely
been recruited and plans to establish a distribution centre in Kigali are advanced.
In Zimbabwe, construction is underway on a 700 000 ton per annum cement mill in Harare for about US$85 million. Having a modern and efficient
mill in the geographic and economic heart of the country will give PPC an added competitive advantage.
In a recent announcement, we advised that pending finalisation of the necessary conditions, our shareholding in Habesha Cement in Ethiopia
increases to 51%. The construction of the 1,4 million ton per annum facility has commenced at a project cost of about US$140 million.
The factory site is well located 35km north-west of the bustling Addis Ababa where construction activity is under way. This will benefit
our project once commissioned in 2016.
Earlier in the year we announced our investigation into acquiring a 49% shareholding in an Algerian company that will construct a cement
plant of up to two million ton per annum. Cement demand in Algeria is increasing at a significant pace, outstripping supply by some
four million ton per annum. The feasibility study is at an advanced stage and the board will make the final decision on this project in the
first half of 2015. The business development team continues to investigate further opportunities across the continent.
Board changes
Mr Ketso Gordhan, chief executive officer and executive director of the PPC board, resigned in September 2014, and Mr. Bheki Sibiya
consequently assumed the role of executive chairman until a new chief executive officer is appointed.
We welcome Mr Darryll Castle who was appointed to the board as an independent non-executive director in October 2014. He brings to the
board a broad range of experience and skills spanning corporate management, fund management, financial analysis, mining and engineering.
Following a request from shareholders holding 10% of the equity in the company, a general meeting is scheduled for the 8th of December 2014
to consider the removal of the entire board of directors of PPC.
Prospects
Growth in the South African economy, which remains subdued, is an important foundation for our expansion strategy. Improved economic growth
is necessary more especially at a time when cement capacity is increasing markedly. We therefore remain confident about prospects for
strong growth in the other African markets in which we operate. We believe we are on track to meet our strategic objective of generating 40%
of our revenues from the rest of the continent by 2017.
On behalf of the board
BL Sibiya TDA Ross MMT Ramano
Executive chairman Lead independent director Chief financial officer
17 November 2017
Dividend announcement
Notice is hereby given that the final ordinary gross dividend of 76 cents per share has been declared payable to
ordinary shareholders in respect of the year ended 30 September 2014. This dividend will be paid out of profits as determined
by the directors.
The local dividends tax rate is 15% and no STC credits have been utilised in this declaration. The dividends tax to be
withheld by the company amounts to 11,4 cents per share, giving a net dividend payable to shareholders of 64,6 cents per
share where no exemption is applicable.
The issued share capital of the company at the declaration date comprises 605 379 648 shares and the company’s 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 Monday, 17 November 2014
Last day to trade “Cum” dividend Friday, 2 January 2015
Shares trade “Ex” dividend Monday, 5 January 2015
Record date Friday, 9 January 2015
Payment date Monday, 12 January 2015
Share certificates may not be dematerialised or rematerialised between Monday, 5 January 2015 and Friday, 9 January 2015,
both dates inclusive. Transfers between the South African and Zimbabwean registers may not take place between
Monday, 5 January 2015 and Friday, 9 January 2015, 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, 5 January 2015
Record date Friday, 9 January 2015
Payment date, on or shortly after Monday, 12 January 2015
The register of members in Zimbabwe will be closed from Monday, 5 January 2015 to Friday, 9 January 2015, 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
Group company secretary
17 November 2014
Sandton
Summarised consolidated statement of comprehensive income
Year ended Year ended
30 Sept 30 Sept %
Notes 2014 2013 change
Audited Audited
Rm Rm
Revenue 9 039 8 316 9
Cost of sales 6 266 5 546 13
Gross profit 2 773 2 770
Administration and other operating expenditure 1 030 853 21
Operating profit before items listed below: 1 743 1 917 (9)
BBBEE IFRS 2 charges 37 48
Zimbabwe indigenisation costs 1 93
Operating profit 2 1 705 1 776 (4)
Finance costs (including fair value adjustments on financial instruments) 3 467 379 23
Investment income 53 22
Profit before equity accounted earnings and exceptional items 1 291 1 419 (9)
Earnings from equity accounted investments 24 20 20
Impairments 4 (111) (13)
Other exceptional adjustments 4 1 12
Profit before taxation 1 205 1 438 (16)
Taxation 5 356 507 (30)
Profit for the year 849 931 (9)
Attributable to:
Shareholders of PPC Ltd 840 931
Non-controlling interests 9 -
Other comprehensive income, net of taxation 268 202
Items that will be reclassified to profit or loss upon derecognition 221 193
Effect of cash flow hedges 7 36
Effect of translation of foreign operations 214 157
Items that will not be reclassified to profit or loss upon derecognition 47 9
Revaluation of available-for-sale financial investments 58 11
Taxation on revaluation of available-for-sale financial investments (11) (2)
Total comprehensive income 1 117 1 133 (1)
Earnings per share (cents) 6
Basic 160 178 (10)
Diluted 158 175 (10)
Summarised consolidated statement of financial position
30 Sept 30 Sept
2014 2013
Audited Audited
Notes Rm Rm
ASSETS
Non-current assets 8 938 6 411
Property, plant and equipment 7 223 5 522
Goodwill 7 268 101
Other intangible assets 8 681 232
Equity accounted investments 9 223 410
Other non-current assets 10 534 146
Deferred taxation assets 9 -
Current assets 2 637 2 465
Inventories 894 923
Trade and other receivables 11 1 180 1 050
Cash and cash equivalents 563 492
Total assets 11 575 8 876
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 12 (1 173) (1 236)
Other reserves 733 539
Retained profit 2 255 2 257
Equity attributable to ordinary shareholders of PPC Ltd 1 815 1 560
Non-controlling interests 603 582
Total equity 2 418 2 142
Non-current liabilities 7 186 4 900
Deferred taxation liabilities 1 030 1 063
Long-term borrowings 13 5 740 3 462
Other non-current liabilities 14 42 27
Provisions 374 348
Current liabilities 1 971 1 834
Short-term borrowings 13 351 584
Trade and other payables and short-term provisions 15 1 620 1 250
Total equity and liabilities 11 575 8 876
Net asset book value per share (cents) 345 293
Summarised consolidated statement of cash flows
Year ended Year ended
30 Sept 30 Sept
2014 2013
Audited Audited
Notes Rm Rm
Cash flow from operating activities
Operating cash flows 2 472 2 486
Working capital movements 111 399
Cash generated from operations 2 583 2 885
Finance costs paid (426) (269)
Investment income received 53 22
Taxation paid (499) (525)
Cash available from operations 1 711 2 113
Dividends paid (880) (770)
Net cash inflow from operating activities 831 1 343
Acquisitions of equity accounted investments 9 (3) (126)
Acquisitions of subsidiary companies 17 (662) (140)
Investments in property, plant and equipment and intangible assets 16 (2 182) (970)
Other investing movements 7 17
Net cash outflow from investing activities (2 840) (1 219)
Net borrowings raised/(repaid) before bond issuances 201 (500)
Proceeds from the issuance of bonds 13 1 750 650
Purchase of shares in terms of the FSP share incentive scheme 12 (53) (56)
Net cash inflow from financing activities 1 898 94
Net (decrease)/increase in cash and cash equivalents (111) 218
Cash and cash equivalents at beginning of the year 492 248
Cash and cash equivalents acquired on acquisitions of subsidiary companies 17 149 6
Exchange rate movements on opening cash and cash equivalents 33 20
Cash and cash equivalents at end of the year 563 492
Cash earnings per share (cents)* 325 404
*Cash earnings per share is calculated using cash available from operations divided by the total weighted average number of shares in issue for the year.
Summarised consolidated statement of changes in equity
Other reserves
Equity
Unrealised Foreign Available- attributable
surplus on currency for-sale Equity to ordinary Non-
Stated reclassification translation financial Hedging compensation Retained shareholders controlling Total
capital of plant reserves assets reserves reserves profit of PPC Ltd interest equity
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Balance at September 2012 (1 181) 5 45 25 (43) 250 2 075 1 176 - 1 176
Acquisition of subsidiary companies - - - - - - - - 512 512
Dividends declared - - - - - - (770) (770) - (770)
IFRS 2 charges - - - - - 139 - 139 - 139
IFRS 2 charges transferred to non-controlling
interests - - - - - (62) - (62) 62 -
Non-controlling interest share of foreign
currency translation reserve - - - - - - - - 5 5
Sale of shares, treated as treasury shares,
by consolidated BBBEE entity* 1 - - - - (1) - - - -
Total comprehensive income - - 157 9 36 - 931 1 133 - 1 133
Transfers and other movements - (4) - 3 - (20) 21 - 3 3
Treasury shares held in terms of the FSP share
incentive scheme (56) - - - - - - (56) - (56)
Balance at September 2013 (1 236) 1 202 37 (7) 306 2 257 1 560 582 2 142
Acquisition of subsidiary companies - - - - - - - - 140 140
Dividends declared - - - - - - (848) (848) (32) (880)
IFRS 2 charges - - - - - 48 - 48 - 48
Non-controlling interests' share of
foreign translation reserve - - - - - - - - 41 41
Put options recognised on acquisition of
subsidiary company^ - - - - - - - - (137) (137)
Total comprehensive income - - 214 47 7 - 840 1 108 9 1 117
Vesting of certain BBBEE 1 entities and
FSP share incentive scheme 116 - - - - (116) - - - -
Transfer to retained profit - (1) - - - (5) 6 - - -
Treasury shares held in terms of the
FSP share incentive scheme (53) - - - - - - (53) - (53)
Balance at September 2014 (1 173) - 416 84 - 233 2 255 1 815 603 2 418
*For details on the sale of shares refer note 12.
^For details on the put options refer note 14.
Segmental information
The group discloses its operating segments according to the business units which are regularly reviewed by the group executive committee which comprise
cement, lime, aggregates and readymix and other.
Aggregates
Group Cement* Lime and readymix# Other^
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Revenue
South Africa 6 671 6 392 5 395 5 413 792 724 484 255 - -
Rest of Africa 2 432 1 960 2 315 1 806 25 74 92 80 - -
9 103 8 352 7 710 7 219 817 798 576 335 - -
Inter-segment revenue (64) (36)
Total revenue 9 039 8 316
Operating profit before items listed below 1 759 1 981 1 595 1 846 107 126 57 25 - (16)
BBBEE IFRS 2 charges 37 48 37 44 - 3 - 1 - -
Restructuring costs 16 64 5 64 11 - - - - -
Zimbabwe indigenisation costs 1 93 1 93 - - - - - -
Operating profit 1 705 1 776 1 552 1 645 96 123 57 24 - (16)
South Africa 1 230 1 465 1 072 1 326 96 123 62 32 - (16)
Rest of Africa 475 311 480 319 - - (5) (8) - -
Fair value adjustments on financial instruments 38 25 40 29 1 1 (5) (6) 2 1
Finance costs 505 404 384 264 3 2 8 5 110 133
Investment income 53 22 48 17 2 3 3 2 - -
Profit before earnings from equity accounted
investments and exceptional items 1 291 1 419 1 256 1 427 96 125 47 15 (108) (148)
Earnings from equity accounted investments 24 20 24 20 - - - - - -
Exceptional items (110) (1) (81) 10 - - (29) (11) - -
Profit before taxation 1 205 1 438 1 199 1 457 96 125 18 4 (108) (148)
Taxation 356 507 314 464 25 34 17 9 - -
Net profit 849 931 885 993 71 91 1 (5) (108) (148)
Depreciation and amortisation 615 522 542 465 40 36 33 21 - -
EBITDA~ 2 374 2 504 2 137 2 312 147 162 90 46 - (16)
South Africa 1 801 1 970 1 569 1 778 147 162 85 46 - (16)
Rest of Africa 573 534 568 534 - - 5 - - -
EBITDA margin (%) 26,3 30,1 27,7 32,0 18,0 20,4 15,6 13,7 - -
Assets
Non-current assets 8 938 6 411 7 991 5 968 310 286 637 157 - -
Current assets 2 637 2 465 2 191 2 133 192 201 253 126 1 5
Total assets 11 575 8 876 10 182 8 101 502 487 890 283 1 5
South Africa 6 541 6 202 5 225 5 527 502 487 813 183 1 5
Rest of Africa 5 034 2 674 4 957 2 574 - - 77 100 - -
Investments in property, plant and equipment 2 119 964 2 025 917 62 37 32 10 - -
Capital commitments (refer note 18) 3 896 1 088 3 860 1 078 7 9 29 1 - -
Liabilities
Non-current liabilities 7 186 4 900 5 768 3 575 101 91 96 21 1 221 1 213
Current liabilities 1 971 1 834 1 707 1 529 48 73 143 58 73 174
Total liabilities 9 157 6 734 7 475 5 104 149 164 239 79 1 294 1 387
South Africa 7 446 5 702 5 789 4 104 149 164 214 47 1 294 1 387
Rest of Africa 1 711 1 032 1 686 1 000 - - 25 32 - -
* Includes head office activities
# Includes readymix in 2014 from the effective date of consolidation
^ Other comprises BBBEE trusts and trust funding SPVs.
~ Excluding BBBEE IFRS 2 charges, Zimbabwe indigenisation costs and restructuring costs.
Revenue is split between South Africa and the rest of Africa based on where the underlying products are anticipated
to be consumed or used by the customer.
No individual customer comprises more than 10% of the group revenue.
Notes to the summarised consolidated year-end results
1. Basis of preparation
The preliminary summarised consolidated financial statements have been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB)
in issue and effective for the group at 30 September 2014 and the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committee
and financial reporting pronouncements as issued by the Financial Reporting Standards Council. The results are presented in accordance with IAS 34 -
Interim Financial Reporting and comply with the Listings Requirements of the JSE Limited and the Companies Act of South Africa. These summarised preliminary
consolidated financial statements do not include all the information required for full annual financial statements and should be read in conjunction with
the consolidated annual financial statements.
These preliminary summarised consolidated financial statements have been prepared under the supervision of MMT Ramano CA(SA), chief financial officer, and
were approved by the board of directors on 17 November 2014 who take full responsibility for the preparation of the preliminary summarised consolidated
financial results and that the financial information has been correctly extracted from the underlying audited annual financial statements.
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 2013, except for the following revised accounting standards and interpretations that were adopted during the year, and which did
not have a material impact on the reported results:
IFRS 1 (amendment) - Government Loans
IFRS 7 (amendment) - Offsetting Financial Assets and Financial Liabilities
IFRS 11 - Joint Arrangements
IFRS 10 - Consolidated Financial Statements
IAS 19 (amendment) - Employees Benefits
IAS 27 - Separate Financial Statements
IAS 28 - Investments in Associates and Joint Ventures
IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mine
Standards that had an impact on disclosure of the reported results:
IFRS 12 - Disclosures of Interests in Other Entities
IFRS 13 - Fair Value Measurements
These summarised preliminary consolidated financial statements for the year ended 30 September 2014 have been audited by Deloitte & Touche, who expressed
an unmodified opinion thereon. The auditor also expressed an unmodified opinion on the annual financial statements from which these summarised preliminary
consolidated financial statements were derived. A copy of the auditor’s report on the summarised preliminary consolidated financial statements and of the
auditor's report on the annual consolidated financial statements are available for inspection at the company’s registered office, together with the financial
statements identified in the respective auditor’s reports. The auditor’s report does not necessarily report on all of the information contained in this
announcement. Any reference of future financial information included in this announcement has not been reviewed or reported on by the auditors.
30 Sept 30 Sept
2014 2013
Audited Audited
Rm Rm
2. Operating profit
Included in operating profit:
Amortisation of intangible assets 72 34
Consultation fees incurred on empowerment transactions - 4
Depreciation 543 488
Donation made in terms of Zimbabwe indigenisation transaction - 27
IFRS 2 charges:
BBBEE IFRS 2 charges 37 48
Cash settled IFRS 2 charges (5) (3)
Equity settled IFRS 2 charges 10 29
Zimbabwe indigenisation IFRS 2 charges 1 62
Restructuring costs 16 64
3. Finance costs (including fair value adjustments on financial instruments)
Bank and other borrowings 73 70
Bonds 108 11
BBBEE funding transaction 110 133
Dividends on redeemable preference shares 48 57
Long-term borrowings 62 76
Finance lease interest - 1
Long-term loans 203 172
Time value of money adjustments on rehabilitation and decommissioning
provisions and put option liabilities 47 21
541 408
Capitalised to plant and equipment and intangibles (36) (4)
505 404
Fair value gains on financial instruments (38) (25)
467 379
South Africa 465 371
Rest of Africa 2 8
4. Impairments and other exceptional adjustments
Gain on remeasurement of equity stake in Pronto (refer note 17) 1 -
Impairment of goodwill (refer note 7) (65) (6)
Impairment of property, plant and equipment (46) (6)
Profit on disposal of equity accounted investment - 1
Profit on disposal of properties - 11
Impairment of loans advanced to equity accounted investees - (1)
(110) (1)
During the year, the carrying value of the assets at PPC Aggregate Quarries Botswana (Pty) Limited and CIMERWA Limited were assessed for potential
impairment. Following these reviews, R17 million and R29 million was recorded against property, plant and equipment at PPC Aggregate Quarries Botswana
and CIMERWA respectively.
5. Taxation
30 Sept 30 Sept
Taxation rate reconciliation 2014 2013
A reconciliation of the standard South African normal taxation rate Audited Audited
is shown below: % %
Total taxation as a percentage of profit before taxation
(excluding earnings from equity accounted investments) 30,1 35,8
Prior year taxation impact^ 5,9 (0,5)
Taxation as a percentage of profit before taxation, excluding prior year
taxation adjustments 36,0 35,3
Empowerment transactions and IFRS 2 charges not tax deductible (0,8) (2,8)
Foreign taxation rate differential 0,9 1,1
Finance costs on BBBEE funding transaction not tax deductible (2,4) (2,6)
Other non-deductible costs and impairments (4,0) (2,0)
Withholding taxation (1,7) (1,0)
South African normal taxation rate 28,0 28,0
^Represents a taxation refund relating to prior years of R70 million.
30 Sept 30 Sept
2014 2013
Cents Cents
6 Earnings and headline earnings
Earnings per share
Basic 160 178
Diluted 158 175
Basic (normalised)^ 170 214
Diluted (normalised)^ 168 212
Headline earnings per share (cents)
Basic 179 179
Diluted 176 176
Determination of headline earnings per share
Earnings per share 160 178
Adjusted for:
Profit on disposal of property, plant and equipment and intangible assets - (2)
Taxation on profit on disposal of property, plant and equipment
and intangible assets - 1
Impairment of goodwill 12 -
Impairment of property, plant and equipment 9 2
Taxation on impairment of property, plant and equipment (2) -
Headline earnings per share 179 179
30 Sept 30 Sept
2014 2013
Audited Audited
Rm Rm
Normalised earnings
Net profit 849 931
Normalisation adjustments^ 118 188
967 1 119
Attributable to:
Shareholders of PPC Ltd 958 1 119
Non-controlling interests 9 -
Headline earnings
Net profit 849 931
Gain on remeasurement of equity accounted stake in Pronto (1) -
Impairment losses on financial assets - 1
Impairment of property, plant and equipment 46 6
Taxation on impairment of property, plant and equipment (12) -
Impairment of goodwill 65 6
Profit on disposal of property, plant and equipment and intangible assets - (11)
Taxation on profit on disposal of property, plant and equipment - 2
Headline earnings 947 935
Attributable to:
Shareholders of PPC Ltd 927 935
Non-controlling interests 20 -
^Normalised earnings adjusts the reported earnings for the effects of BBBEE IFRS 2 and Zimbabwe indigenisation charges, restructuring costs, impairments
and prior year taxation adjustments.
The difference between earnings and diluted earnings per share relates to shares held under the forfeitable share incentive scheme that have not vested,
together with the dilution impact of the group’s various empowerment transactions. For the weighted average number of shares used in the calculations,
refer note 12.
7. Goodwill
Balance at beginning of the year 101 6
Acquisitions of subsidiary companies 227 100
Impairment losses recognised (65) (6)
Translation differences 5 1
Balance at end of the year 268 101
Goodwill, net of impairments, is allocated to the following
cash generating units:
CIMERWA Limited 41 101
Safika Cement Holdings Pty Limited 78 -
Pronto Holdings Pty Limited 149 -
268 101
Following the goodwill impairment assessment reviews, the recoverable amount of CIMERWA to which goodwill had been allocated on acquisition, was calculated
to be lower than the carrying amount, and resulted in an impairment loss of R65 million. In 2013, the goodwill recorded on the PPC Aggregates Quarries
of Botswana acquisition was impaired by R6 million.
8. Other intangible assets
Balance at beginning of the year 232 133
Acquisitions of subsidiary companies^ 428 124
Additions 63 6
Amortisation (72) (34)
Transfers and other movements 19 -
Translation differences 11 3
Balance at end of the year 681 232
Comprising:
Right of use of mineral assets 54 53
ERP development and other software 132 83
Brand and trademarks 359 96
Customer relationships - contractual and non-contractual 132 -
Off market lease agreements 4 -
681 232
^Intangible assets were recognised on the acquisitions of Pronto, Safika Cement and CIMERWA (refer note 17) and are amortised over a maximum period
not exceeding 15 years. The group does not have any indefinite life intangible assets, other than goodwill.
9. Equity accounted investments
Investments at cost at beginning of the year 305 179
Acquired through business combinations 1 -
Investments made during the year 3 126
Pronto Holdings Pty Limited^ - 110
Habesha Cement Share Company* 3 16
Investments at cost at end of the year 309 305
Loans advanced 46 46
Share of retained profit 83 59
Acquisition of subsidiary company (refer note 17)^ (215) -
Balance at end of the year 223 410
^PPC obtained control over Pronto following the acquisition of the remaining 50% it did not own in the company during the year for R280 million.
Refer to note 17 for further details.
*In February 2014, PPC acquired a further equity stake in Habesha Cement Share Company, for a purchase consideration of R3 million (2013: R16 million),
marginally increasing PPC’s shareholding in the company to 31,6% (2013: 30,7%).
30 Sept 30 Sept
2014 2013
Audited Audited
Rm Rm
10. Other non-current assets
Advance payments for plant and equipment^ 322 -
Loans advanced 3 4
Unlisted collective investment~ 114 105
Unlisted investment at fair value@ 95 37
534 146
^In terms of the construction agreements with the suppliers of the new cement plants in Rwanda and the DRC, a portion of the contract price is required
to be paid in advance of the plant construction and are secured by advance payment bonds.
~Comprises an investment by the PPC Environmental Trust in unit trusts. This investment is held to fund PPC’s South African environmental obligations.
@PPC Ltd holds a 6,75% (2013: 6,75%) shareholding in Ciments du Bourbon, incorporated in Reunion. The fair value of the investment has been calculated
using a dividend yield valuation methodology. The movement in fair value of R58 million (2013: R9 million) has been credited against other comprehensive
income.
11. Trade and other receivables
Trade receivables 1 064 835
Impairment of trade receivables (30) (19)
Net trade receivables 1 034 816
Prepayments 61 133
Other financial receivables 57 58
Taxation prepaid 28 43
1 180 1 050
Trade receivables have increased following the consolidation of Safika Cement and Pronto during the year. Details of the fair value of trade and other
receivables acquired are included in note 17.
30 Sept 30 Sept
2014 2013
Audited Audited
Shares (000) Shares (000)
12. Stated capital
Number of shares and weighted average number of shares
Number of shares
Total shares in issue at beginning of the year 605 380 566 030
Shares issued in terms of the second BBBEE transaction& - 39 350
Total shares in issue at end of the year 605 380 605 380
Shares held by consolidated participants of the
second BBBEE transaction treated as treasury shares& (37 382) (39 350)
Shares held by consolidated BBBEE trusts and trust funding SPVs
treated as treasury shares* (34 765) (37 967)
Shares held by consolidated Porthold Trust (Private) Limited
treated as treasury shares@ (1 285) (1 285)
Shares purchased in terms of the FSP share incentive scheme
treated as treasury shares~ (5 866) (4 745)
Total shares in issue (net of treasury shares) 526 082 522 033
Weighted average number of shares
Used for earnings and headline earnings per share 526 180 522 678
Used for dilutive earnings and headline earnings per share 532 755 530 869
Used for cash earnings per share 526 180 522 678
Shares are weighted for the period in which they are entitled
to participate in the net profit of the group.
Rm Rm
Stated capital
Balance at beginning of the year (1 236) (1 181)
Sale of shares, treated as treasury shares, by consolidated BBBEE trust^ - 1
Shares purchased in terms of the FSP share incentive scheme treated as
treasury shares~ (53) (56)
Vesting of shares held by certain BBBEE 1 entities* 100 -
Vesting of shares on a portion of the shares held in terms of the
FSP share incentive scheme~ 16 -
Balance at end of the year (1 173) (1 236)
&Issued in terms of the second BBBEE transaction which was facilitated by means of a notional vendor funding (NVF) mechanism. These shares participate in
20% of the dividends declared by PPC during the NVF period, ending 30 September 2019. With the exception of the Bafati Investment Trust, entities
participating in this transaction are consolidated into the PPC group during the transaction term.
*Certain of the BBBEE trusts and trust funding SPV’s from PPC’s first BBBEE transaction are consolidated, and as a result, shares owned by these entities
are carried as treasury shares on consolidation. In December 2013, 3 202 770 shares vested to beneficiaries and are no longer treated as treasury shares.
@Shares owned by a Zimbabwean employee trust company treated as treasury shares.
~In terms of the forfeitable share incentive scheme, 5 865 851 shares (2013: 4 744 733) are held in total for participants of this long-term incentive scheme.
The shares are treated as treasury shares during the various vesting periods of the awards. In February 2014, 619 457 shares vested and are therefore
no longer treated as treasury shares.
^During 2013, the Current Team Trust, a PPC consolidated trust which was consolidated into the group in terms of the first BBBEE transaction, sold a portion
of their PPC shareholding in the open market for the benefit of beneficiaries that passed away.
30 Sept 30 Sept
2014 2013
Audited Audited
Rm Rm
13. Borrowings
Bonds$ 2 395 645
Long-term loan* 1 520 1 519
Long-term loans denominated in foreign currencies# 605 87
Preference shares^ 64 88
4 584 2 339
BBBEE funding transaction~ 1 156 1 123
Preference shares 465 482
Long-term borrowings 691 641
Long-term borrowings 5 740 3 462
Short-term borrowings and short-term portion of long-term borrowings 351 584
Total borrowings 6 091 4 046
Maturity profile of borrowings:
One year 351 584
Two years 763 74
Three years 2 706 756
Four years 61 2 591
Five and more years 2 210 41
6 091 4 046
$Comprises four unsecured bonds, issued under the company’s R6 billion Domestic Medium Term Note programme, and recognised net of capitalised transaction
costs of R5 million (2013: R5 million), with variable interest rates between 1,26% and 1,5% above three-month JIBAR and the fixed rate denominated
bond, of R250 million, bears interest at 9,86% p.a. The bonds are repayable between 28 March 2016 and 30 June 2021.
*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.
#The loans are denominated in US dollars and Rwandan francs, with the US dollar variable component of the loan bearing interest at 650 basis points above
libor and the fixed interest rate loan bearing interest rate at 16% p.a. The Rwandan franc loan bears interest at 16% p.a. The loans are repayable over a
10-year period ending 2024. The loans are secured against CIMERWA’s land and buildings.
^Redeemable preference shares bearing semi-annual dividends, with variable interest rates averaging 85% of prime and fixed rate of 9,37% p.a. and compulsory
annual redemptions ending December 2016.
~Comprises redeemable A preference shares bearing semi-annual dividends, with variable interest rates averaging 85% of prime with compulsory annual
redemptions until December 2016, and B preference shares bearing interest at a rate of 78% of prime and B loans bearing interest at a rate of
285 basis points above JIBAR,
with interest and capital repayable in December 2016. In terms of IFRS, these long-term borrowings have been consolidated as PPC has provided guarantees
for funding that had an outstanding balance of R1 291 million (2013: R1 161 million).
The group is in compliance with its debt covenants and the company’s borrowing powers are not restricted by its memorandum of incorporation.
14. Other non-current liabilities
Cash-settled share-based payment liability 2 24
Derivative financial instruments (cash flow hedge) - 2
Put option liabilities^ 145 -
Loan to CIMERWA from non-controlling shareholder - 23
147 49
Less: Short-term portion of non-current liabilities (105) (22)
42 27
^With the acquisition of 69,3% equity stake in Safika Cement (refer note 17), PPC granted non-controlling shareholders individual put options, with
different exercise dates, for the sale of their remaining shares in the company to PPC. As these put options are contracts to purchase the group’s own
equity instruments, they give rise to financial liabilities for the present value of the estimated redemption amount in accordance with paragraph 23 in
IAS 32. One of the put options is anticipated to be exercised next year and the liability of R105 million has therefore been classified as a current
liability under derivative financial instruments. The put option price is based on the company’s EBITDA applying an appropriate earnings multiple.
The balance of the put options are anticipated to be exercised after the fifth anniversary of the transaction. Time value of money adjustments of
R16 million have been recorded since inception of the put options. Subsequent to the initial recognition of the liability of R137 million, the value of
the put options have been remeasured resulting in the initial liability being reduced by R8 million, which has been recorded under fair value adjustments
on financial instruments.
15. Trade and other payables and short-term provisions
Cash-settled share-based payment liability (short-term portion) 16 22
Derivative financial instruments^ 1 112
Equity contribution for future non-controlling interest in wholly owned subsidiary~ 115 -
Other financial payables 296 32
Put option liability (refer note 14) 105 -
Retentions held for plant and equipment* 81 85
Trade payables and accruals 664 535
Trade and other financial payables 1 278 786
Current taxation and VAT payable 142 42
Other non-financial payables - 98
Payroll accruals 194 260
Restructuring provisions 6 64
1 620 1 250
^Included in derivative financial instruments is the net financial liability payable on interest rate swaps, and has been netted off in accordance with
IAS 32. The financial asset amounts to Rnil million (2013: R325 million), and the financial liability amounts to R1 million (2013: R429 million).
Interest rate swaps liabilities of R113 million were settled in December 2013.
~Includes the value of land and mining rights transferred by the future non-controlling shareholders for equity in the DRC companies. Certain conditions
still need to be met before the shares in PPC Barnet DRC Holdings, the holding company for the DRC group of companies, are issued to the non-controlling
shareholders. Post the issuance of these and the IFC shares, discussed in note 21, PPC Ltd will hold 69% of the shares in PPC Barnet DRC Holdings.
A corresponding amount has been recorded in property, plant and equipment (PPE). The company is currently determining the appropriate split between PPE
and other intangibles, and any transfers between categories will be recorded in 2015.
*Retentions held on the construction of the cement plant in Rwanda. These retentions will be paid to the contractor once the plant achieves guaranteed
performance targets.
Trade payables have increased following the consolidation of Safika Cement and Pronto during the year. Details of the fair value of the trade and other
payables acquired are included in note 17.
16. Investment in property, plant and equipment and intangible assets
Cement 2 088 923
Lime 62 37
Aggregates and readymix 32 10
Investment in property, plant and equipment and intangible assets 2 182 970
South Africa 479 441
Rest of Africa 1 703 529
2014 2013
Pronto Safika
Holdings Cement CIMERWA
17. Acquisitions of subsidiary companies
Fair value of assets and liabilities acquired at date of acquisition
Property, plant and equipment 162 63 433
Goodwill 149 78 100
Other intangible assets 192 236 124
Cash and cash equivalents 65 84 6
Current assets 89 199 749
Long-term borrowings (10) - (108)
Long-term provisions and deferred taxation (78) (72) (75)
Short-term borrowings - - (35)
Current liabilities (75) (71) (47)
Financial assets 1 - -
Other - - (6)
Non-controlling interests - (140) (512)
Total consideration 495 377 629
Less fair value of the previously held equity stake (215) - -
Consideration payable for new equity in consolidated company - - (493)
Consideration payable to external entities 280 377 136
Pronto Holdings Pty Limited (Pronto)
During July 2014, PPC acquired the remaining 50% equity stake in Pronto making it a wholly-owned subsidiary. Pronto is a prominent Gauteng based readymix
and fly ash supplier, with nine batching plants. This acquisition provides PPC additional ways to increase its cement distribution channel while also
expanding its range of complementary products available to the building and construction industry. In accordance with the requirements of IFRS on
step-acquisitions, the previously held equity accounted investment was re-valued resulting in an adjustment gain of R1 million. The fair values presented
are provisional and are subject to further review for twelve months post acquisition date. No material changes are anticipated.
Pronto was consolidated from 1 July 2014 and favourably impacted group revenue by R136 million and reported EBITDA of R29 million. The impact on both
earnings and headline earnings per share was 3 cent per share.
Safika Cement Holdings Pty Limited (Safika Cement)
During December 2013, all conditions to the transaction were filled and PPC acquired a 69,3% equity stake in Safika Cement for R377 million. This transaction
further enhances PPC´s South African footprint through Safika Cement´s five blending facilities and one milling operation that produce blended cement under
three brands: IDM Best Build, Castle and the Spar Build-It house brand. The purchase price allocation has been finalised and there are no material differences
from the values reported in the 2014 interim results.
Safika Cement favourably impacted group revenue by R353 million and recorded EBITDA of R83 million. The impact on both earnings and headline earnings
per share was 7 cent per share.
CIMERWA Limited (CIMERWA)
In February 2013 PPC acquired a 51% equity stake in CIMERWA, a Rwandan cement company, for a transaction value of US$69 million (R629 million) with
US$15 million (R136 million) being paid to previous shareholders of the company, while a further US$54 million was used to subscribe for shares in CIMERWA of
which US$31 million was paid during the 2013 financial year and the balance settled during this reporting year. As the company is consolidated, the equity
subscription is payable to CIMERWA and therefore only the US$15 million payable external to the PPC group was reflected as a cash flow outside the
consolidated PPC group. The fair values of assets acquired and liabilities have now been finalised, with no material changes to the amounts previously
disclosed.
CIMERWA favourably impacted revenue by R234 million (2013: R118 million) and reported EBITDA loss of R1 million (2013: profit of R7 million). The impact on
earnings and headline earnings per share was a reduction of 21 cents per share (2013: nil cents per share) and 5 cents per share (2013: nil cents per share)
respectively. For comparability purposes, it should be noted that CIMERWA was only consolidated for eight months in 2013.
Quarries of Botswana
In October 2011 all conditions precedent with regards to the transaction to acquire three aggregate quarries and related assets in Botswana were met.
The transaction value amounted to R52 million and was to be funded over a two year period. The final payment of R5 million (2013: R4 million) was paid.
30 Sept 30 Sept
2014 2013
Audited Audited
Rm Rm
18. Commitments
Contracted capital commitments 2 786 752
Approved capital commitments 1 110 336
Capital commitments 3 896 1 088
Operating lease commitments 138 195
4 034 1 283
South Africa 242 202
Rest of Africa 3 654 886
3 896 1 088
Capital commitments are anticipated to be incurred:
- within one year 2 246 975
- between one and two years 1 572 95
- greater than three years 78 18
3 896 1 088
Commitments for capital expenditure are stated in current values which, together with expected price escalations, will be financed from surplus cash generated
and borrowing facilities available to the group. The increase in commitments follows the approvals of the construction of DRC cement plant and Zimbabwe cement
mill expansion project. Project funding of US$168 million and US$75 million for the DRC and Zimbabwe projects respectively has been secured.
19. Rest of Africa expansion
The company continues to investigate business opportunities in both South Africa and the rest of Africa in line with its expansion strategy.
Ethiopia
During November 2014, PPC advised of the conclusion of discussions to acquire the Industrial Development Corporation´s 20% stake in Ethiopian based
Habesha Cement Share Company (“HCSCo”) for a purchase consideration of US$13 million. Financial close is expected in December 2014 once all conditions have
been satisfied. PPC initially acquired 27% shareholding in HCSCo in July 2012, and has subsequently increased its shareholding to 31%. This acquisition
increases PPC´s stake in HCSCo to 51% while the balance of the shareholding in HCSCo is held by over 16 000 local shareholders.
HCSCo has begun the construction of a 1,4 million ton per annum facility 35 km north-west from the bustling city of Addis Ababa. Project costs for this
factory are approximately US$135 million and commissioning of the plant is anticipated in 2016.
Algeria
The company signed the Memorandum of Understanding, valid for 12 months, with Hodna Cement Company in June 2014, for the construction of a new cement plant
in Algeria. The project is estimated to cost approximately US$350 million. It is expected that PPC will have 49% shareholding in the project. The feasibility
of the project is still underway and will be presented to board for approval once results are positive.
30 Sept 30 Sept
2014 2013
Audited Audited
Level * Rm Rm
20. Fair values of financial assets and liabilities
The financial assets and liabilities carried at fair value are
classified into three categories as reflected below:
Financial assets
Available-for-sale
Unlisted investments at fair value 3 95 37
Loans and receivables
Loans advanced 2 3 4
Loans to equity accounted companies 2 46 46
Trade and other financial receivables 2 1 091 874
Cash and cash equivalents 1 563 492
At fair value through profit and loss
Unlisted collective investments at fair value (held-for-trading) 1 114 105
Total financial assets 1 912 1 558
Level 1 677 597
Level 2 1 140 924
Level 3 95 37
Financial liabilities
At amortised cost
Long-term borrowings 2 5 769 3 523
Short-term borrowings 1 351 584
Trade and other financial payables 2 1 156 567
At fair value through profit and loss
Cash-settled share-based payment liability 2 18 22
Put option liabilities 3 145 -
Derivatives
Derivative instruments-current (cash flow hedge) 2 1 112
Derivative instruments-non-current (cash flow hedge) 2 - 2
Total financial liabilities 7 440 4 810
Level 1 351 584
Level 2 6 944 4 226
Level 3 145 -
*Level 1 - financial assets and liabilities that are valued accordingly to unadjusted market prices for similar assets and liabilities. Market prices in
this instance are readily available and the price represents regularly occurring transactions which have been concluded on an arm’s length transaction.
*Level 2 - financial assets and liabilities are valued using observable inputs, other than the market prices noted in the level 1 methodology, and make
reference to pricing of similar assets and liabilities in an active market or by utilising observable prices and market related data.
*Level 3 - financial assets and liabilities that are valued using unobservable data, and requires management judgement in determining the fair value.
Methods and assumptions used by the group in determining fair values:
The estimated fair value of financial instruments is determined, at discrete points in time, by reference to the mid price in an active market wherever
possible. Where no such active market exists for the particular asset or liability, the group uses valuation techniques to arrive at fair value, including
the use of prices obtained in recent arm’s length transactions, discounted cash flow analysis and other valuation techniques commonly used by market
participants.
The fair value of cash and cash equivalents, trade and other financial receivables and trade and other financial payables approximate their respective
carrying amounts of these financial instruments because of the short period to maturity of these instruments.
21. Events after the reporting date
In November 2014, the International Finance Corporation (IFC) signed a subscription agreement to acquire a 10% stake in PPC Barnet DRC Holdings, completing
the DRC shareholders requirements and commitment from IFC. Post the issuance of these shares, PPC will hold 69%, Barnet 21% and IFC 10% of the shares in
PPC Barnet DRC Holdings.
Other than the HCSCo transaction and IFC subscription into PPC Barnet DRC Holdings noted above, there are no other events that occurred after the reporting
date that may have a material impact on the group's reported financial position at 30 September 2014.
Administration
Directors:
BL Sibiya (Executive chairman), DJ Castle, ZJ Kganyago, NB Langa-Royds, MP Malungani, S Mhlarhi, B Modise, T Moyo*,
MMT Ramano (Chief financial officer), TDA Ross (Lead independent director), J Shibambo *Zimbabwean
Registered office:
148 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton 2146, South Africa)
Company secretary:
JHDLR Snyman
148 Katherine Street, Sandton, South Africa
(PO Box 787416, Sandton 2146, South Africa)
Transfer secretaries:
Link Market Services SA (Pty) Limited
13th Floor, Rennies House, 19 Ameshoff Street, Braamfontein, South Africa
(PO Box 4844, Johannesburg 2000, South Africa)
Transfer secretaries Zimbabwe:
Corpserve (Private) Limited
4th Floor, Intermarket Centre, Corner 1st Street/Kwame Nkrumah Avenue, Harare, Zimbabwe
(PO Box 2208, Harare, Zimbabwe)
Sponsor:
Merrill Lynch South Africa (Pty) Ltd
DISCLAIMER
This document including, without limitation, those statements concerning the demand outlook, PPC’s 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. The historical information published in this report has been audited.
These results and other information is available on the PPC website: www.ppc.co.za
Date: 18/11/2014 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.
